Just like any other IRA, a self-directed IRA is any tax-advantaged retirement custodian that can be used to build wealth for retirement periods. However, self-directed IRA custodians are unique as they offer the required freedom and flexibility to invest in a wider range of assets beyond other traditional investment types such as bonds and mutual funds.
Here are some of the insider’s tips on reasons to consider becoming a self-directed IRA custodian:
1. You Can Take Control of Your Financial Future
We’re talking about retirement here! If you have set retirement goals for yourself, then who better to do that other than you, yourself. By becoming a self-directed IRA custodian with an Equity Trust, you could be in control of the decisions for your retirement account. This could give you the freedom and flexibility to invest in the best way for you, seeing your personal comfort is met.
Unlike other IRAs, this Nuview self-directed IRA is not employer specific such as 401ks, 403ks, or pensions and savings plans. It will roll over as you change your job, and you can continue to build savings and investing for your retirement.
2. You Can Invest Beyond the Stock Market & Get More Options
The major difference between a self-directed IRA retirement account and an Equity trust is the increased amount of freedom and flexibility than investing in the stock market. Many of the self-directed IRA custodians don’t quite realize that they aren’t limited to invest in stocks and bonds but could also invest in real estate, private equity, precious metals, and a wide variety of other alternative investment opportunities.
3. They could provide some tax advantages.
As long as you follow the self-directed IRA rules, there are several opportunities where you could get tax advantages. In fact, there are two main types of IRA – traditional IRA and a Roth-based IRA – each of which has both unique advantages and characteristics. All income, profit, and appreciation from these self-directed investments return directly back to the IRA without getting taxes and adding to the taxable income bracket of the year.
4. They Could Serve As An Untapped Source of Investment Capital that Could Impact Communities Positively
If you are an estate investor or a business owner who has been investing in an IRA, it could also be used as an additional source of capital for businesses and or future investment opportunities. With country-wide investments of about $9.2 trillion in the IRA, it could serve as capital for retirement plans. Once investors would learn about retirement accounts and work with financial advisers, you could possibly tap into the vast investment possibility.
5. They Could Be Used to Create a Tax-Advantaged Legacy For Your Loved Ones
You may have wondered if it is possible to extend the potential benefits of these self-directed IRAs beyond your own lifetime. You can select one or many beneficiaries of the IRA. You could select anyone related to you or a charity of your choice to inherit your investments after your time. Once a person retires, and they may have passed, their assets will firstly be tax-advantaged and then further distributed to the beneficiaries of the account.
These are the best tips and reasons to consider becoming a self-directed custodian.