What do today’s investors think about Self-Directed IRAs? It’s one thing to talk about what other people are saying, it’s another thing entirely to show it. That’s why we have dug into some recent quotes in the news and from investors, trying to find out what people think about Self-Directed IRAs. One note: Many of these quotes are not directly about Self-Directed IRAs but may be related to some other ideas that are indirectly or directly connected to Self-Directed IRAs.
Let’s explore what people are saying.
Using Cryptocurrencies Within a Self-Directed IRA
Since bitcoin is legally classified as property by the U.S. government and my crypto is inside of an IRA, I knew that I would greatly reduce my taxable expenses due to exponential growth.
Matthew Roed, as quoted at CNBC.
In the above quote, Matthew Roed explains why he views a Bitcoin IRA—an investment strategy one can access through Self-Directed IRAs—as an ideal way to save money on investments by using a legal, valid tax strategy in retirement investing. Because Bitcoin and other cryptocurrencies are essentially treated as assets by the federal government for taxation purposes, it makes the process of retirement investing in cryptocurrencies much more straightforward for anyone who has a Self-Directed IRA.
Going Beyond Self-Directed IRAs
Self-direction as a means to boost savings is not limited to retirement plans.
Jaime Rakulinecz, writing at Forbes.
In this example, Jaime Rakulinecz showed that he was thinking more broadly about self-direction as a whole concept. Rather than simply thinking about Self-Directed IRAs, Rakulinecz also addressed, for example, Self-Directed HSAs. Another option for investing without an IRA, a Self-Directed Coverdell Education Savings Account, shows that it’s possible for investors to use self-directed strategies without investing directly in IRAs. For many people, this is an ideal way to save money while still accomplishing their goals.
Using Self-Directed IRAs in a Way That’s Ahead of the Curve
A growing number of investors are using “self-directed” IRAs to invest in other assets, including real estate, limited partnerships, LLCs, and stock in private companies — even start-ups. In this, as in so many things, Peter Thiel was ahead of the curve.
-Steven Murrell, writing at the Monterey Herald.
Steven Murrell wrote a piece at the Monterey Herald that chose to highlight the recent example of Peter Thiel’s apparent “masterstroke” of a brilliant Self-Directed IRA investment. Because Thiel put aside money invested in a private company—PayPal was private at the time—he was able to amass a fortune within the security of a Roth IRA. Because of that, the money in the Roth IRA remaining after-tax money could have potentially saved Peter Thiel millions of dollars.
A Quote about Retirement in General
To me, retirement means doing what you have fun doing.
-Dick Van Dyke
We all know Dick Van Dyke from his days in entertainment, but he continues to go strong well into his 90s. Perhaps it’s due to this attitude: Dick Van Dyke has pursued a life of doing what he enjoyed, and it’s likely been beneficial for his health.
Think about what you would like to do to make your retirement better. With a Self-Directed IRA, you could be doing the investing that you enjoy doing. You won’t be limited to specific stocks or funds but can instead access a wide variety of nontraditional retirement assets from real estate to tax liens to precious metals. The point? It’s on your terms if you choose too self-direct.