subject: The Self Directed Ira [print this page] A self-directed IRA is an investment venue that allows the account holder to make his or her choices in the selection of assets for an investment portfolio. For instance, an IRA owner may choose to buy into stocks, bonds, or other types of non-traditional investments, as opposed to going with the investment decisions as chosen by the financial firm facilitating the account.
One of the most beneficial features of the IRA is the flexibility of choosing your own investments. Many investors are now flocking to direct investments in real estate via their IRAs - a preferred investment option for these people because it helps hedge one's investments against inflation while diversifying the investor's portfolio.
This comes at a time that not a lot of investors are aware of the benefits of real estate as an investment for retirement. In addition, there are only a relatively limited number of options with which the average investor can hold this type of asset in retirement accounts. Overall, less than 2% of all retirement accounts contain investments in real estate, even though the IRA is available as a chief, and arguably most viable, platform for placing real estate assets in an investment portfolio.
Aside from stocks and bonds, self-directed IRA regulations also permit investors the right to buy into real estate, mortgages, private placements, and other assets that aren't as popular. Oftentimes, IRA owners are given tools with which to observe and manage their account balances. Via this tool, investors can use the flexibility a self-directed IRA offers in terms of investment options, as well as the greater asset control and growth potential direct real estate investments provide. If you're thinking about using your self-directed IRA account for this type of investment, call up your account provider or financial planner for more information on how to bulk up your nest egg for retirement.
