W






 

Self Directed IRA Rules Simpler Than You May Think
By Adam D. King Platinum Quality Author
 

Most people are concerned about self directed IRA rules. No one wants to make a mistake. Mistakes can be costly; particularly when it comes to self directed IRAs. If you have questions, you should find the following information interesting and helpful.

There are fewer self directed IRA rules than you might think, at least, when it comes to government regulations. A brokerage may have additional rules or policies.

The basic theme of Congress' regulations regarding self directed IRAs is quite simple. They want you to make sensible low risk investments, so that the money will be there when you need it most.

Other self directed IRA rules and laws prevent you from investing in items that can not be liquidated quickly and easily. So, you cannot invest in antiques or collectibles. It takes too long to find a buyer and it's too difficult to assign an accurate value to them.

Stocks, mutual funds, bonds and certificates of deposit are considered sensible low risk investments, but there are a number of other options. The brokerage that you currently use may not offer them, but some of the options (real estate investments for example) could help you grow your retirement wealth faster than the more conventional options.

Most real estate can be liquidated fairly quickly, if the need arises. The value of property is easy to assess. There are just a few additional self directed IRA rules that apply to real estate.

Purchases must be made for investment purposes only. You or your family members cannot live in a house deeded to your IRA. Any costs for maintenance or repairs must come out of the account. And, all income, whether it is from rent or resell, must go back into the account.

The best real estate deals are cash deals. You might be able to get a mortgage in the name of the IRA trustee, but the costs could exceed the profits, especially if you intend to hold the property for an extended period of time.

Experienced real estate investors are using the funds from their self directed IRAs for purchases for two major reasons. They increase their profits by reducing their taxes. And they grow their retirement wealth faster, because real estate deals can be highly profitable, if you can find the right ones.

One Equity Trust client earned $93,500 for his IRA in less than two years. If you have the time and the knowledge, you can do the same thing. Or, you can get some help from experienced investors who do have the time and knowledge. There are several that are willing to do most of the work for you.

Sadly, most brokers that offer self directed IRAs do not offer their clients the option of investing in real estate. They stick with the more traditional investments. One company, Equity Trust, offers their clients the ability to invest in real estate or anything else that fits within the self directed IRA rules and guidelines. If you are using a different brokerage, you might want to consider switching.

 
An Authoritative Approach to Quick Turn Real Estate Investing.
Download the FREE Ebook Now!
CLICK HERE
Copyright 2010-201 Adam King/IRA-And-PrivateMoney.com, PrivateMoneyandMarkets.com All Rights Reserved
Disclaimer