subject: How Does A Self Directed Ira Work? [print this page] With a self directed ira you will have a checkbook, a debit card and all the tools that come along with a business checking account. All you need to know are the few things you cannot do, the rest is up to your imagination. Basically a self directed ira is a unique hybrid tool that utilizes a self-directed custodian and a specialized legal structure. It is a vehicle that eliminates red tape and most importantly the continuous fees traditional investment firms are charging you right now!
How Do I Move My Existing Retirement Account to a Self Directed IRA?
Your current retirement account can be moved to a self-directed custodian who allows alternative investment vehicles that pass their compliance and IRS scrutiny. To do this, it is highly advised you utilize an expert with experience in setting up and customizing your self directed ira. So heres the simple step-by-step approach:
1. Your retirement account is moved to a self-directed custodian.
2. A legal and accounting team creates a customized LLC and submits to the custodian.
3. You open a business checking account for the self directed ira
4. You submit an authorization form to the custodian instructing them to fund your new bank account.
Once this is done you will have absolute control over your new self directed and you can direct your investing efforts. This could be in the form of business seed capital, real estate investing, tax lien certificates, and the traditional stocks, bonds, and mutual funds.
What Are The Other Benefits of a Self Directed IRA?
The real beauty of this vehicle is that you can leverage yourself into a bigger investment with the potential for much higher rates of return. I love the idea of using the other guys money to grow my own investments and having the added benefit of additional tax deductions.
If you qualify, a Self-Directed Roth IRA is even better because the earnings are tax-free at distribution compared to the traditional IRA. You could have almost no tax on unlimited earnings!
It is your job and your right to take control of your own retirement and become your own bank through a self directed ira. There is a revolution going right now, today. Be part of that revolution and take control of your future from Wall Street and put it back in your hands. Its time to get a self directed ira and take control of your own financial destiny.
Next post, Ill discuss some of the types of investing you can do within your SDIRA.
