What are the Benefits of a Self Directed IRA?
Self Directed IRAs offer:
Portfolio Diversification– Self Directed IRAs allow investors to diversify their retirement portfolios into alternative assets which are generally unavailable to them through a bank or brokerage house. Investors can take a more balanced approach by diversifying their IRAs into alternatives in addition to market-based products.
Tax advantaged growth- Self Directed IRAs enjoy the same tax benefits of standard IRAs. Self Directed IRAs combine the tax savings inherent in retirement accounts along with the tremendous growth potential of alternatives.
Freedom from market fluctuations– Investors seeking relief from precipitous market fluctuations related to Wall Street investments benefit from Self Directed IRAs which can invest in assets with steady and reliable income (such as rental real estate, promissory notes, tax liens, etc.).
Capital source-Self-Directed IRAs are the solution for individuals seeking an additional source of capital for desired investments. Many investors would like to enter the alternative market however their personal funds are tied up. A Self Directed IRA allow these investors to access such investments with retirement funds.