Unlocking the Power of Self-Directed IRAs

Many people are unaware that they can use their individual retirement account (IRA) to invest in more than traditional options like stocks, bonds, and mutual funds. In fact, with a Self-Directed IRA , investors can tap into a much broader range of assets to grow their retirement savings. This flexibility opens the door to opportunities that go beyond the usual offerings, empowering investors to take control of their financial future.

A Brief History of IRAs

In 1974, the Employee Retirement Income Security Act (ERISA) was passed, shifting much of the responsibility for retirement savings from employers to employees. Just a year later, IRAs were introduced, allowing individuals to set aside money for retirement with tax advantages. Over time, the most common investment options associated with IRAs have been stocks, CDs, and mutual funds. However, Self-Directed IRAs offer much more freedom for those who want to explore non-traditional investment options.

What is a Self-Directed IRA?

A Self-Directed IRA is a retirement account that allows investors to choose exactly where their money is invested. While traditional IRAs limit investors to a narrow selection of assets, Self-Directed IRAs allow for a broader range of assets, making investing in real estate, private businesses, precious metals, and more possible.

Under ERISA and IRS regulations, the only prohibited investments in an IRA are life insurance contracts and collectibles (such as artwork, jewelry, and antiques). Everything else is fair game as long as you avoid prohibited transactions, giving investors plenty of room to diversify their retirement portfolios.

Why Haven’t You Heard of Self-Directed IRAs?

The retirement industry has historically been dominated by custodians, administrators, and institutions that focus on traditional investments, which is why many investors aren’t aware of Self-Directed IRAs. However, self-directed IRAs offer investors greater freedom to choose non-traditional assets, providing more opportunities to diversify their portfolios.

Self-Directed IRA

With a Self-Directed IRA through Mountain West IRA , investors can choose from a wide range of non-traditional assets, including but not limited to:

• Real Estate: Single-family homes, multi-unit properties, apartment buildings, and even raw land can be held in a Self-Directed IRA. Investors can also explore cash flow properties, tax deeds, and tax liens.
• Notes and Mortgages: This includes both secured and unsecured notes, offering flexibility to those who want to invest in loans or debt instruments.
• Precious Metals: Gold, silver, and other approved metals can be held in an IRA, providing a hedge against inflation and market volatility.
• Private Placements: These include investments in LLCs, partnerships, joint ventures, and privately held stock.

This list is not exhaustive; many investors find other creative ways to diversify their retirement portfolios. The key benefit is the flexibility to tailor your investments to your personal knowledge, goals, and risk tolerance.

Take Control of Your Retirement

For those looking to take complete control of their retirement investments, a Self-Directed IRA offers a powerful way to diversify in assets beyond standard options. With the ability to invest in real estate, private companies, precious metals, and more, Self-Directed IRAs can unlock new paths to wealth-building.

To learn more about Self-Directed IRAs and how to begin investing in non-traditional assets of your choosing, visit Mountain West IRA’s website and explore the possibilities today or set up a free consultation with us!

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This post is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor for personalized advice.

Mountain West IRA, Inc. does not render tax, legal, accounting, investment, or other professional advice. If accounting, tax, legal, investment, or other similar expert assistance is required, the services of a competent professional should be sought.