No question that 2020 cut down on in-person networking at industry conventions. But, it did also create an unprecedented amount of information people could access remotely.
Listen around the virtual investor campfire long enough with successful investors and average people well positioned to retire comfortably, and you will find “self-directed” retirement is a common term.
Here are seven good reasons that Self-Directed IRAs (SDIRAs) need to be not only ‘on your radar’, but need to be a part of your life.
Reasons to Explore Self-Directed IRAs (SDIRAs)
Let’s face it, YOU want to be in control. With SDIRAs you make the decisions. Where your money goes, how much you want to invest, and perhaps more importantly, how much you want to risk. Not only that, you control how much you want to invest in the IRA ($6,000 limit in 2020 or $7,000 if age 50 or over).
2. The Sky is the Limit with Self-Directed IRAs
A modest $6,000 annual limit for deposit may not excite a lot of people. After all, unless you are starting at a young age it could take awhile to amass your goal. That said, SDIRAs are not really about the deposit — they are about growth. Remember you can invest in just about anything and there is no limit to the growth. You can invest in an LLC or private equities – and that growth goes right back into your tax-deferred SDIRAs.*
3. Traditional or ROTH
Just like a traditional IRA, you have flexibility when it comes to what kind of IRA you want. A ROTH IRA is created with post tax dollars – so no tax deduction for depositing. However, there is also no tax when you go to take the money out.
So, let’s go back to #1 and #2 – You control what you invest in AND there is no limit to the growth. That is a win-win.
4. Pick a Cause
Today a lot of people care where their money is going. Investing locally or in companies with sustainable resources, that is your call to make. Invest where your heart is.
5. Your Work Plan Does Not Suffer
Just because your work has a plan for you that doesn’t mean you can’t have a self-directed IRA as well. You may be limited on pre-tax deductions depending on your earned income employer plan but hey, we are playing for the long game here.
6. Rollovers are Allowed with SDIRAs
SDIRAs can be funded in the same way you would any other retirement account. You can deposit money or just rollover an existing retirement account and super-size it into a you-control-your-own-destiny SDIRA!
7. You Choose the Custodian
An IRA custodian is just a fancy set of words for who will help you move money around. You can’t just open a savings account and do it all yourself (the paperwork anyway).
The good news is that there are several SDIRAs custodian’s to choose from – and the fees are generally really low.
Learning More About SDIRAs Online
There are a host of great events that you can attend online in 2020 to gain information on SDIRAs. How people use it, who the best players are, even some really great strategies.
Matter of fact, you still have a chance in 2020 to catch one!
Quest Con 2.0 is all online, November 13th and 14th.
Why should you seriously consider attending?
- You have the ability to network with hundreds of people in a one-stop-shop setting – all online.
- Receive top education from the ease and comfort of your home.
- Learn from nationwide experts for the low price of $69. (Save 30% with the Promo Code: Tracy30)
- Come and go as you please, getting the information you need with the flexibility of it being online.
- Network with other investors with the happy hour to kick off the event.
2020 will shape the future for thousands of investors. THIS year is the year to get your ducks in a row and learn all you can.
Most private investors think that 2021-22 will be investment opportunities you only see once every 10 years or so.
How are you going to end 2020? Hopefully with us at the Quest Con 2.0. Get your ticket today, using the code Tracy30 to save 30%. You can also join Tracy and other lady investors during the Quest Women in Real Estate panel on Friday, November 13th.