Self-Directed Checkbook IRA

Is It Possible to Use a Self-Directed Checkbook IRA on a Budget?

When you think about the Self-Directed Checkbook IRA, be honest: you imagine that it is part of the complicated wealth mechanics that only the very rich can use. And while it is true that the Self-Directed Checkbook IRA comes with upfront fees, you would be surprised to learn that once a Self-Directed Checkbook IRA is established, it is very easy to use. The fees will be low because you will be handling so many of your finances yourself. And since you are free to choose what you invest in, you will also be able to use a Self-Directed Checkbook IRA on a budget.

Given what we have seen happen to the economy in recent months, it is only fair to ask if more investors can make retirement payments on a budget. It was not long ago that many Americans could not swing $400 for an emergency charge. Many would not be able to handle such an emergency with cash, either—as many as 40% of those who responded to the survey.

Given the need for a tighter budget than usual and the possibility of a recession, it is always important to ask if your retirement investments should go on the backburner. But with a Self-Directed Checkbook IRA, you will find that your retirement investments are far more flexible than you might have imagined. Here is why.

How a Self-Directed Checkbook IRA Can Fit into a Middle-Class Budget

The idea of creating your very own Single Member LLC, which is then held within a Self-Directed IRA, sounds expensive. But you would be surprised. There are fees to establish this, of course, but the ultimate goal is that you’ll end up with an LLC’s bank account within a Self-Directed IRA. You can then use that bank account to make easy retirement investments.

When you have money set aside like this, it makes it easy to make retirement investments even as your personal life is on a budget. You are free to choose how your investments work, where they go, and whether or not you make contributions to the retirement account.

Keep in mind that one benefit of a Self-Directed Checkbook IRA is that with a Self-Directed IRA, you will find it easy to take on a wide variety of assets. That can add peace of mind to anyone who is worried when the stock market tanks, as it did early in 2020. In times of extreme volatility, a portfolio that is made up of multiple asset classes can offer some stability.

Do You Have to Make Sacrifices with the Self-Directed Checkbook IRA During Recessions?

The recession can be different for everyone. Some people may find that their sole income is wiped out with downsizing, which in turn means that they have to turn to emergency funds to keep food on the table. Other people might find that they only need to make minor adjustments to their lifestyle.

This year’s potential recession has the potential to change all that. There is no doubt that a global pandemic is affecting everyone, no matter how much wealth for retirement they might have stocked away.

Does a Self-Directed Checkbook IRA offer specific advantages for people looking to live on a budget? The flexibility of this account is nice to have. And when you have already established the account, you will generally enjoy low fees on an ongoing basis. That means that you may have more wiggle room left over to think about what is really important to you, whether that includes retirement planning or not.

It is possible to use a Self-Directed Checkbook IRA on a budget, but it requires that you take control of the reins. Your own financial future is in your hands when you use a Self-Directed Checkbook IRA—which means that you will have freedom along with the responsibility.

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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