Things you should know before self directing.
Choosing a Custodian
While it’s possible to open an IRA at almost any financial institution, only a few have the know-how to hold alternative assets. A good custodian will walk you through the process. This is done by educating you through potential downturns, such as prohibited transactions, IRS rules, regulations, or red flags other custodians tend to overlook.
Choosing a Plan
IRA Club offers many tax-advantaged accounts such as an HSA, ROTH IRA, Traditional IRA, SEP IRA, SIMPLE IRA, Inherited IRA, a Solos 401k, and even Minor IRAs for your children or grandchildren. Choosing the right type of IRA, Solo 401k, or HSA will best be determined by examining your current plans and retirement goals. A reputable IRA Club specialist will help position the right fit. A simple phone call will get you in the right direction. Contact IRA Club
Limitless Investment Possibilities
Self Directed IRAs open a world of investment opportunities beyond stocks, bonds, and mutual funds. A Self Directed IRA allows you to invest in real estate, promissory notes, raw land, wind turbines, life settlement policies, mobile homes, tax liens/deeds, etc. As long as the investment generates passive income back into the IRA, the options are endless.
Understanding Prohibited Transactions
When it comes to Self Directed IRA investing there are certain transactions that the IRS considers to be prohibited. You need to steer clear of these to avoid any unintended tax consequences. The prohibited transactions are very simple to understand. Simply put, no self-dealing. Before investing, be sure to familiarize yourself with the IRS rules regarding disqualified persons and prohibited transactions. Click here to learn more.
Investing In What You Know
With control comes responsibility. Understanding what you are investing in, is just as important as choosing the type of investment. A good rule of thumb is to invest in what you know. This will allow you to ask the right questions and perform precise due diligence. Remember, IRA Club does not provide investment, tax, financial, or legal advice.