With so many investment options out there, it can be quite difficult to know which ones make true sense and which ones are just “flash in the pans.” One asset that many investment professionals all agree is a good idea, especially if you have even a modicum of financial sense, is that of a self-directed IRA real estate account. Here are a few of the reasons why agree with this.
The Ability To Divesrify
When you invest in mutual funds, you are essentially left at the mercy of whoever is in charge of the fund in question. However, when you are able to invest in a self-directed account, you can invest in as many different class asset options as you want.
It may be that you are investing in a particular market in which you have some great skill or in-depth knowledge. If this is the case, then a self-directed plan is definitely the way you want to go. Why not make some money from your knowledge and get paid for what you have worked so hard to learn.
Just as with IRA plans that are directed by third parties, self-directed IRA real estate account plans can enjoy the tax benefits of either being tax-deferred or tax-exempt, depending on what plan you end up choosing.
Protection From Creditors
Again, just as with managed IRA plans, self-directed IRA plans can shield your money from the greedy hands of creditors. This can save you from the financial disaster of having your bank account frozen.
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