There are many alternative ways to invest your money and help grow you wealth for retirement, your family and for future generations. Self-Directed IRAs are great for putting you in charge of where your money is invested. You choose the plans that you understand and feel the most comfortable with. At iPlanGroup, our aim is to make you aware of and comfortable with the fact that it is permissible to be in control of your own investments.
We will open doors to a great selection of alternative investment options for anyone with an iPlan Self-Directed IRAThese are just a selection of some of the investment options available to you
Maintaining Your Tax-Deferred Account Status
To maximize your investments growth you need to keep your IRA within the tax-free guidelines so as not to subject your funds to taxation and penalties. For you to be in control of your retirement funds you need to ensure that all your Self-Directed transactions don’t disqualify your IRA from the tax-free benefits you are entitled to.
As your iPlanGroup Self-Directed IRA is a trust account for your benefit when you retire, and for your family’s financial future, all funds – regardless of which investment opportunity you decide to invest in – must flow through your Self-Directed account. If you are investing in real estate, for example, the escrow must be opened in the IRA account name. Earnest money deposits are paid from the IRA, all investing is for the benefit of your IRA, and all investment expenses are paid from the IRA. When you invest through a Self-Directed account, your IRA, not you, owns the investment. You own the account.
Buying precious metals can act as a hedge against economic turmoil. Gold has been the universal symbol of wealth for civilizations throughout the ages.
Gold is a unique investment that has benefited mankind for thousands of years. From ancient Egypt, Greece, and Rome to modern day society, mankind has been fascinated with gold and its undeniable value. In times of crisis, gold is a great assest and secures a safe haven. Gold is rare, durable and does not tend to wear out in the manner of lesser metals when passed from hand to hand. Universally accepted, gold can be easily bought and sold worldwide. Gold bullion bars are tangible assets. Throughout history gold has been an ideal store of value and an excellent way to diversify one’s investments, protect wealth, hedge against inflation, deflation, and political uncertainty.
Silver bullion has been mankind’s primary monetary metal throughout history. It is durable, divisible, has utility value, convenient, and holds its value. Unlike gold, silver is commonly used today as an industrial commodity which provides investors with a dual demand source. Industrial demand for silver has consistently grown for the last three decades due to its unique properties such as its malleability, strength, its unmatched electrical and thermal conductivity, sensitivity and high reflectance of light, and its ability to endure extreme changes in temperature. In addition to its industrial uses, silver is also used in numerous health care products, due to its unique antibacterial characteristics.
Platinum has become a widely-used although it is an extremely rare metal. It was first used by pre-Columbian South American natives to create artifacts. While it was known to Europeans as early as the 16th century, it was not until a published report on a new metal of Colombian origin in 1748 that it became investigated by scientists. It is critically important to the auto industry, and the chemical, electrical and glass manufacturing industries due to its a remarkable resistance to corrosion, even at high temperatures. It is also an important part of the jewelry trade as well. More rare than gold, it is estimated that all of the platinum ever mined throughout history would fit into a cube less than 25 feet on each side. The majority of platinum that is mined today comes from South Africa and Russia.
Self-Dealing can be summarized as a transaction that can benefit you personally instead of your IRA. Whereas a Prohibited Transaction refers to improper use of your IRA by yourself or any person disqualified, this means parties related to your IRA. Internal Revenue Code Section 4975 states: “An IRA cannot engage in any transaction (direct or indirect) with anybody or anything considered related to the IRA.” Although you are able to invest your IRA in almost any type of investment, there are a few investments that are considered prohibited for your Self-Directed IRA. To find out what investments are prohibited you should look at Internal Revenue Code Section 408, which will give you some more information. All these references to Internal Revenue Codes may look complicated but they really aren’t. You just need to take them into consideration when deciding on your Self-Directed IRA investment choices
One of the most popular alternative investment options available to Self-Directed IRA holders is private lending. By utilizing a Self-Directed IRA you can loan money to fund real estate transactions as if you were a bank, without distribution penalties.
Many investors choose to make mortgage loans to individuals looking to purchase properties. Another opportunity is funding start-ups or other small businesses. Typically, these are hard money loans that require repayment over a specified period of time, with interest rate determined by the amount of the loan.
Your Self-Directed IRA earns a profit based on the amount of interest you and the loanee agree upon. When loaning funds for a mortgage for either a personal or commercial property, you have the ability to secure the loan with that property. If the loan defaults, you retain ownership of the property. This can then be sold, or rented to create a passive income stream. This security is one of the reasons private lending with a Self-Directed IRA has become so popular.
Private money lending, as well as a number of different investment types available to you in your Self-Directed IRA have the ability to build real wealth within your retirement account. As with any investment opportunity, we recommend consulting an attorney for your best option.
For more information on what a Self-Directed IRA can do for you, Schedule your FREE 30-Minute IRA Strategy Session Today!