Later-in-Life Benefits to Self-Directed IRAs

Later-in-Life Benefits to Self-Directed IRAs

Self-Directed IRAs are a great way to save for retirement. These accounts allow you to invest in a variety of assets, including real estate, precious metals, and private businesses. In addition to tax advantages and investment options that aren’t available in traditional IRAs or 401(k)s, Self-Directed IRAs also offer some other benefits that can help your finances once you retire, giving you benefits for enjoying retirement later in life. Today, we’ll focus on the later-in-life benefits you can use if you enjoy a Self-Directed IRA, or, in some cases, any retirement account. Here’s what you’ll need to know.

Self-Directed IRAs Offer Tax Advantages

Self-Directed IRAs allow you to invest in any asset you choose—assuming it’s in line with the retirement rules established by the government—whether it’s real estate, precious metals, mutual funds, or ETFs. You don’t have to worry about being limited by the types of investments available through your 401(k) plan or other type of IRA.

These tax advantages can offer you a tremendous amount of flexibility in retirement. For example, the Self-Directed Roth IRA lets you invest after-tax money into your retirement account, essentially front-loading the taxes. You can then take valid withdrawals from the Roth IRA later in life tax-free.

Self-Directed IRAs Allow You to Invest in a Wide Variety of Alternative Assets

A Self-Directed IRA allows you to invest in a wide array of alternative assets. You can put your money into real estate, businesses, and other types of property to diversify your portfolio and potentially earn better returns than traditional investments such as stocks or bonds. If you want more control over how your retirement money is invested but don’t have enough money for a solo 401(k), this may be the perfect solution for you.

One popular alternative investment is precious metals like gold and silver. The price shifts of precious metals like gold can be enticing because they offer an opportunity for growth due to their limited supply, and because these price changes aren’t necessarily correlated to the stock market, you don’t have to depend on what’s going on in stock market headlines.

A Self-Directed IRA Helps You Save for Retirement and Possibly Continue Investing

You have more options when it comes to investing with a Self-Directed IRA than with a traditional IRA or employer plan. With the right investment strategy, you can use these accounts to create income streams that last you throughout retirement while also preserving capital and preventing large tax bills. With a Self-Directed Roth IRA, for example, you can continue to invest the money in a tax-protected account even after you reach retirement age.

We know that there are a lot of options out there when it comes to retirement accounts, but we think that Self-Directed IRAs are one of the most versatile. They give you more control over what assets your retirement fund is invested in, which can make a big difference when it comes time to retire or even just invest while working full-time.

A Self-Directed IRA can have lots of later-in-life benefits, especially when it comes to tax protections and the ability to continue investing even after you hit retirement age. But it’s important to know which accounts will offer these benefits. For example, a Self-Directed Roth IRA is especially helpful in post-retirement years because of its after-tax contributions, which make it easier to work with the money already in the account without worrying about the tax hit when you take distributions.

Want to know more about later-in-life benefits to Self-Directed IRAs? Reach out to American IRA today by dialing us at 866-7500-IRA.