SELF-DIRECTED IRA INVESTMENT
HOW TO TAKE CONTROL
OF YOUR RETIREMENT
THROUGH A SELF-DIRECTED IRA
Self-directed IRAs allow individuals to take control of their financial
plans by investing in real estate they can see and private businesses
they understand, often with people they know and trust. For many,
the heightened tangibility of these assets is a welcome contrast
to the more abstract financial markets.
Since IRAs were created in 1974, it is estimated that two percent
of IRA owners have invested in alternatives such as real estate
and mortgage notes (or trust deeds). Instead, investors have settled
for the traditional investments sold by broker-dealers and banks.
Today, there is flexibility and control found in self-directed
IRAs. Ask yourself the following questions; Are
you fed up with unpredictable stock market returns? Are you tired
of broken promises from paid professional adviser? Are you tired
of hearing about an unrelenting parade of scandals?
If you said yes to any of those questions, you should be seeking
investment alternatives to restore wealth to your retirement accounts.
Diversify Your Portfolio
Most of us have heard or read about asset allocation and the importance
of diversification. Even though these are universally accepted concepts,
the average investor has not been made aware of the broad range
of available investment options and thus, has not been able to truly
diversify their retirement portfolio. Balancing your portfolio to
include some of each investment class (real estate, private equity,
stocks, trust deeds, mutual funds, CDs and cash) can help to protect
against volatility in any one class. Because it does not move in
conjunction with other markets or investment like stocks, an asset
such as real estate and trust deeds can provide a hedge against
sudden sector downturns.
While many have lost money in the equity markets, few have suffered
irreversible downturns in their real estate holdings and their trust
deed investments. We believe that real estate’s contrarian
value- combined with low interest rates- has fueled a historic growth
in the number of people purchasing investment property and trust
deeds with IRA monies to truly diversify their portfolios. In addition
to standard all-cash transactions, IRA monies may also be used as
down payments to leverage real estate purchases, to purchase shares
in corporate real estate projects or to invest in trust deeds secured
by real estate.
Federal law allows certain regulated banks and trusts to serve
as custodians for self-directed IRAs that are open to a wide variety
of investment alternatives, including real estate, trust deeds (mortgages),
limited liability companies and private business opportunities.
All these are in addition to traditional options such as mutual
funds, stocks and certificates of deposit.
Permissible Alternative Self-Directed IRA Investments Include:
- 1st or 2nd Trust Deeds
- Commercial, residential, multi-family and vacation real estate
- Foreclosures and other investment property
- Business start-ups
- Franchise opportunities
- Tax liens
- Business loans & notes
- Limited liability companies (LLC)
- C Corporations
- Charitable investing
If you are interested in investing in Trust Deeds, please
Click Here
All written material(s) provided by IPS Commercial
Capital, Inc. is/are for informational purposes only. It is not
intended and may not be relied upon as direct actionable opinion,
guidance, or advice on any legal, tax or investment matter(s). Any
strategies discussed, including examples using actual investments,
are strictly for illustrative purposes and are not to be construed
as an endorsement, recommendation, or solicitation to buy or sell
any investment. An IRA owner considering an IRA investment in a
private placement, closely held business or real estate should consult
with his or her attorney, tax advisor or CPA before making such
investments. IPS Commercial Capital, Inc. does not provide tax,
legal or financial advice.
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