Self Directed Wealth - Why You Need Some Real Estate in Your Life!Making the right Roth IRA investments can mean the difference between a secure financial future and being dependent on social security and friendly relatives. That probably is not a nice way to put it, and it sucks...but it is the truth. With a self directed Roth IRA, you have more choices than in the traditional managed account. Right now, choices are exactly what you need. Diversification of the portfolio has always been advisable, but it is even more so, now. And, since stocks are falling across the board, you may have to come up with some "unique" ideas in order to continue to grow your accounts. Many people are turning to real estate for Roth IRA investments. With the right deals, it is possible to turn a profit quickly! Or, if you are interested in long term gains, you can hold residential or commercial property and even raw land within a self directed Roth IRA for any number of years. You have to choose the right custodian of course, because many brokers do not allow real estate transactions and other less traditional Roth IRA investments. You also have to have time and knowledge. You need time to scan the newspapers for deals that seem potentially profitable. You have to have time to go and look at them, because what may look good in print could be located next to an abandoned tenement. If the property needs renovation, you have to have the time to do it yourself or the financial ability to hire someone. You can make purchases and do repairs using self directed Roth IRA funds. In fact, if you hold a property within the account, all expenses related to the property must come from the account. If you run short, you can make an additional contribution, as long as you will not exceed your yearly maximums. Houses and other properties are allowable Roth IRA investments because they are considered easy to liquidate. But, if you are to be sure that your deals will be profitable or that your custodian will be able to sell in the event of your death, then you have to get some knowledge. If you have little or no experience, you can learn. If you have no time, you are going to need some help though. There are experienced investors that are willing to "take you by the hand", so to speak and show you the ins and outs of the business. These investors are people who were already experienced in real estate investing that have popularized the option for self directed Roth IRA accounts. For example, individuals account holders that were already accustomed to using his or her personal funds for buying, rehabbing and reselling property. By using your retirement account you too could avoid capital gains taxes, which is perfectly legal. In one deal alone, you can make over $20,000.00 dollars more because of the tax savings alone. Labels: Self Directed Wealth, Why You Need Some Real Estate in Your Life |
