When you are a Self-Directed IRA investor, it can sometimes feel like you’re on your own. But you are not. You will be working with a Self-Directed IRA administration firm, which means you have people in your corner. For American IRA, we are always focused on educating people about retirement and Self-Directed IRAs so that they never feel like their lost. And one way we do that is by focusing on tools that help Self-Directed IRA investors empower themselves. Here are some of the tools we like to share.
When you use a Self-Directed IRA, you are often doing your own financial planning and your own calculations. So, it doesn’t hurt to have some good calculators on your side.
The question is: what should you calculate? Here are some calculators that we like to link to at American IRA to help you along your journey:
- Compound Interest Calculator. There is an old saying that compound interest is one of the most powerful forces in the universe. That may be a slight exaggeration, but there is no doubt that many investors count on compound interest building their wealth over time. This compound interest calculator helps you estimate how much you will have to put aside in the present moment to create the retirement of your dreams.
- Mortgage calculator. For many investors, how much money they pay for a mortgage can have a dramatic impact on their bottom line. This also helps investors get a sense of what their expenses might look like. It also helps investors understand what kinds of properties they might be able to acquire within a Self-Directed IRA if they’re investing in real estate within a Self-Directed IRA.
- Retirement calculator. This is a great calculator to help you get an idea of what retirement might look like for you, especially given your current circumstances. How far away are you from retirement? What kinds of annual contributions are you making? What is your current principle? When you know these numbers, you will get a clearer picture of what actions you may need to take to get the calculator on your side.
Other Tools for Self-Directed IRA Investors
That is not it. Even though calculators can be a great way to get a sense of where you stand, it’s important to have further reference when you want to look at the different options available to you.
One of our favorite tools to recommend is our set of Frequently Asked Questions, or FAQs. For example, one of the most common questions we get— “Why haven’t I heard of this?”—is addressed there, explaining that only about 5% of the 46+ million retirement accounts are held in nontraditional assets. This FAQ section is a great way for people to get a sense of what these accounts are, how they can be used, and what more investors need to know as they consider a Self-Directed IRA.
For anyone interested in the Self-Directed IRA, it can be a powerful way to move beyond the stock market and think about nontraditional assets. But it can also be a way for investors to choose their own way forward. That is why we at American IRA think it is so important to make these tools available. It helps people better understand what their retirement needs are. And as you do research, you will become better informed about your own situation and the road you need to take forward. That is key for anyone who’s taking the reins over their own financial situation.