Why set up a self-directed IRA?
Like traditional IRAs, self-directed IRAs allow taxes on assets held inside the IRA account to be deferred or postponed until the money is withdrawn from the account. With alternative investments, account owners can take a more proactive approach toward improving investment returns because they can choose assets that are not publicly marketed. Real estate investors, for instance, can capitalize on their knowledge of an area and/or market by investing in local property or a resort-style home in an up-and-coming area. Investors in private stock can capitalize on their knowledge of emerging companies and industries. Additionally, taxes on appreciation and rental income are deferred, so an investor can grow his or her portfolio at an even faster rate. Another benefit is broader diversification. Recent volatility in the stock market has forced many to take a harder look at their investment allocations in hopes of ensuring a good mix of opportunity and risk. A self-directed IRA provides a br
