Five Reasons Now is a Great Time for a Self-Directed IRA

Five Reasons Now is a Great Time for a Self-Directed IRA

According to, there are over 5.4 trillion dollars in IRAs. But who knows how much money is waiting on the sidelines, waiting to be invested? Using a Self-Directed IRA can be a great option for people who have felt hesitant about investing, particularly in a year that has been dominated by pandemic headlines. We are uncertain about everything, from our income to the way the national economy will play out.

But the benefits of a Self-Directed IRA should not be ignored. Here are five reasons now is a great time to consider this style of investing:

Reason #1: Delayed Tax Dates

The COVID-19 pandemic has delayed tax filing dates this year, giving federal filers an extra few months (from mid-April to mid-July) to file their taxes. For many people, this means some added flexibility. It may also mean that you can use that flexibility to plan the rest of your financial future.

When it comes to your tax return, you’ll be expected to file and pay as you normally would—there’s no wiggle room there—but it doesn’t hurt to use this time to think about how you might save money next year. And using a Self-Directed retirement account like a Solo 401(k) plan is an intriguing way to start.

Reason #2: Finding Opportunity in Crisis

No one wants a crisis to come along. We would all prefer if we could have stocks that only go up, housing prices that remained perfectly stable on their upward climb, and peaceful headlines. But we also know that is not how the world works. Smart investors make sure that during a crisis, they know what kinds of opportunities they should be looking for. For example, a decline in housing demand in your area may mean that this is an ideal time to start investing in real estate, which you can do with a Self-Directed IRA.

Reason #3: Diversification into Other Asset Classes

One of the chief reasons people choose Self-Directed IRAs? They are not looking to make the ordinary types of investments with the kinds of retirement benefits they might get through work. Rather than choose from a limited amount of funds, investors with Self-Directed IRAs can choose from the whole gamut of retirement assets, which includes everything from real estate and precious metals to tax liens and private companies. Some investors use a Single Member LLC to create a “Checkbook IRA” that makes investing in alternative asset classes much more intuitive.

Reason #4: Security

A lot of people are looking for security right now. They want to know that their retirement assets will still be there when they get fired or furloughed. They want to be in charge of their own investments and call the shots. Independent retirement accounts can be a great way to do this. So is working with a Self-Directed IRA administration on your terms.

Reason #5: Tax Benefits

We cannot talk about the reasons to invest in a Self-Directed IRA without addressing the tax benefits. Holding an account like a Self-Directed Solo 401(k) will make it possible for investors to put aside money that they can then deduct as retirement contributions. This makes it “pre-tax” money that can then grow tax-deferred within a retirement account. This allows investors to stretch their budget while also preparing for a long-term future with a secure source of investments.

Interested in learning more about Self-Directed IRAs?  Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation.  Download our free guides or visit us online at

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