Top 5 Reasons to Set Up a Self-Directed IRA this February

Estimated reading time: 3 minutes(Last Updated On: February 19, 2023)

We’re a few days into February and right now is a perfect time to begin taking the steps towards securing your financial future. There are countless benefits associated with self-directed IRAs, like tax advantages and investing in what you know best, but it’s important to take action so you can reap the benefits of the tax savings and investment options offered by a Self-Directed IRA. Ensure that you have enough savings to live comfortably in retirement and learn why starting a Self-Directed IRA during the month of February could make all the difference.


1. Widen Your Investment Options: A self-directed IRA provides the account holder with a greater level of control over their retirement investments. Instead of being limited to a select number of investment options offered by a traditional IRA or 401(k) plan, a self-directed IRA allows you to invest in a wider range of assets, including real estate, private equity, precious metals, and more. Of all the IRAs valued above $5 million dollars, 25% of them are self-directed IRAs invested in alternative assets.  In other words, self-direction can allow for exponential retirement account growth by giving you an opportunity to get out of the typical investment you’re used to.


2. Contribute for Last Year and This Year: One of the best ways to help your IRA grow is by making yearly contributions. The good news is that right now, we are in an amazing window that allows account holders to not only begin contributing for 2023, but also for 2022 for those that haven’t already contributed for the tax year. Until April 18th, 2023 you have the ability to contribute for 2022. So, if you haven’t made last year’s contribution, this is the perfect opportunity to maximize your accounts and contribute as much as possible.


3. Investment Diversification: A self-directed IRA can help diversify your investment portfolio by allowing you to invest in alternative assets that may not be available through a traditional IRA or 401(k) plan. This diversification can help reduce risk and improve the overall performance of your retirement savings. The biggest advantage here is that SDIRAs allow you to tailor your investments to meet your specific goals and risk tolerance. Whether you are saving for a specific purpose, such as a down payment on a second home, or simply seeking to maximize your retirement savings, a self-directed IRA gives you the flexibility to create a personalized investment plan that meets your needs.


4. Make More Money for 2023: By being able to invest in a wider range of assets, a self-directed IRA can offer the potential for higher returns than a traditional IRA or 401(k) plan. This is because some alternative assets, such as real estate or private equity, can offer higher returns than traditional stocks and bonds. You’ll also get tax benefits that can help you save for retirement. For example, contributions to a traditional IRA may be tax-deductible, and the growth of your investments within the account is tax-deferred until you withdraw the funds.


5. Take Advantage of Account Opening Promotions All Month Long: This month, you have the chance to take a trip on us as we share the love with our Valentine’s Day promotion! When you open an account with the $100 fee, you will be entered into a drawing with the chance to win a $500 Gift Card for AIRBNB! If you’re ready to get started or have more questions about self-directed, call our IRA Specialists by scheduling a free consultation today.

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