Not everyone is comfortable investing their hard-earned money into the stock market. Though it provides an outstanding ROI in comparison to a savings account, there’s another route one can consider: a self-directed IRA (SDIRA).
With a self-directed IRA, you are not just limited to stocks and bonds, but you oversee all of the investment decisions, offering greater diversification in your account.
With a SDIRA one can invest in the following:
Limited Partnerships
Tangible Asset Deeds
Tax Lien Certificates
Accounts Receivable Financing
Building Bonds
Commercial Paper
Contracts of Sale
Crowdfunding
Equipment Leasing
Factoring
Foreign Sales Corporation Stock
Improved or Unimproved Land (Leveraged or Un-Leveraged)
Joint Ventures
…And more.
To clarify, you can invest in the same financial products as an IRA with a SDIRA, the account is just overseen by you rather than a financial officer.
One of the convenient things about a self-directed IRA is that you can roll over your 401(k). I’m not recommending anyone do that, I just want to make clear that it’s an option. With great power comes great responsibility, however. If you’re going to manage your own investments that have been rolled over from a 401(k) you must strive to achieve equal or greater ROI than the sponsoring company would’ve managed. After all, this is for retirement.
One of the things that currently has me considering a SDIRA is that as a first-time homebuyer you can use up to 10k of the total amount as a down payment on your first home. Though a home doesn’t always yield the same return on investment, it does serve as an alternate route to acquire your own real estate and build equity.
One thing is for certain, I will be opening up a SDIRA shortly because you can have access to multiple streams of revenue for retirement that can taken advantage of.
For more resources regarding SDIRA’s and help with investments you can visit selfdirected.org to find a comprehensive list of companies that would be able to help manage your investments.
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