There are many benefits associated with self-directed IRAs. Here are the most noteworthy:
- Gain access to a range of alternative investments not offered by traditional banks and brokerage firms, such as direct real estate, gold, and more.
- Invest in what you know and understand, instead of relying on others to manage your investments. For example, if you are familiar with real estate, you can leverage that knowledge by investing in real property.
- Truly diversify your portfolio to protect against market volatility and harsh inflation rates.
- Partner with family members, friends, or colleagues on new investment opportunities. You can build savings together!
- Use commodities to protect your wealth against economic fluctuation.
- Watch your investments grow on a tax-deferred or tax-free (in the case of a Roth) basis.
With a self-directed IRA or real estate IRA, you are not limited to the investment offerings of an IRA custodian or trustee. By using Entrust as the administrator for your self-directed IRA account, you have the flexibility to invest in anything that is permissible. You are not limited to a custodian’s narrow range of stocks, bonds, and mutual funds, but you have access to the same tax advantages!
NOTE: If you already have a traditional or Roth IRA, or a dormant 401(k), you can transfer or rollover the funds to a self-directed plan with no penalties. You do not need to sell any of the assets that you currently have.