Why You Should Use Your Self-Directed IRA to Purchase Alternative Assets
Using your self directed IRA to purchase alternative assets can help you increase your retirement income exponentially. How? Before we answer this, consider some sobering retirement statistics.
Can You Afford to Retire? A Self-Directed IRA Can Get You There
Most financial experts estimate that you’ll need between 60%-80% of your pre-retirement income to maintain your current lifestyle after you retire. Furthermore, according to the Employee Benefits Research Institute, less than 50% of Americans have even given thought to how much money they need to retire on. Couple this with the reality that the largest risk many potential retirees face is running out of funds while they’re alive, and what you have approaches a national crisis. And, who believes that Social Security will still be around. And, if it is, how much of your expenses will it cover? According to the Social Security Administration itself, only about 39%.
What all of this means is that the bulk of money you will need in retirement has to come from income that you generate. This is great news for self-directed IRA owners. Since you’re going to have to create the bulk of the money you need to live on in retirement anyway, shouldn’t you be able to choose which investments to make? A self-directed IRA gives you complete control over how your retirement funds are invested. You can use it to invest in anything you want.
Take Control of Your Retirement with a Self-Directed IRA: Investing in Real Estate
One of the best nontraditional investments that can pay off handsomely for self-directed IRA owners is investing in real estate. It is still the number one path to wealth creation in the world, and with control over your self-directed IRA funds, you can make the following types of real estate investments:
Tax Liens and Tax Certificates
Discounted Notes
Purchase Investment Property
Purchase Commercial Property
Raw Land
Among many more!
