Whether you are 25 or 65, self-directed IRAs are powerful investment vehicles that can help you reach your retirement savings goals. Although these tax-advantaged accounts might seem complicated, especially for a beginner, they are easier to understand than you think.
What is a self-directed IRA?
Self-directed IRAs are IRA accounts that give you more control and greater diversification of your retirement savings and investments. Unlike typical IRAs, you are not limited to bonds, stocks, or mutual funds that you can invest in.
Who should invest in self-directed IRAs?
As hinted at above, self-directed IRAs are excellent for investors who are looking to diversify their assets beyond conventional options offered by normal IRA accounts—bonds, stocks, and mutual funds.
So, if you are looking to invest in real estate, precious metals, private placements, cryptocurrencies, and commodities, this is the best IRA account to consider.
It can be an excellent move to build a solid retirement saving asset base. A moment your assets have metamorphosed to a point where it is reasonable to diversify beyond investment options that large financial institutions offer, using self-directed IRAs can be a great way to supplement your existing investments.
Besides, if you want to enjoy built-in tax breaks on the earnings you get from your assets, opting for self-directed IRAs can be a worthwhile strategy. Like other traditional IRA accounts, you have a chance to grow your account balances in a tax-advantaged space for better future gains.
In other words, you stand to get tax advantages not only for the amount you contribute to your IRA account, but also the capital gains and any form of income that you derive from your properties.
If you are a savvy investor who is already familiar with alternative investment options and wants to diversify his tax-advantaged IRA account, you’ll never go wrong with self-directed IRA. The only catch is that you should invest in companies that specialize in providing trustee services to self-directed IRAs.
This is where Quest Trust Company comes in handy. They will not only help you figure how a self-directed IRA will fit in your investment strategy but will also give you dedicated support from the time you sign up to the post-account-setup process. For more questions, don’t hesitate to contact a Quest IRA Specialist.