If you haven’t heard about self-directed IRAs, you are most likely missing out on one of the most powerful retirement savings tools on the market today. A self-directed IRA is a retirement savings/investment account that, like other IRAs and 401ks, allows you to use the before-tax money to make investments that will increase in value in order to help you meet your retirement goals faster. The main difference between a self-directed IRA and other types of IRAs and 401ks is that not only do they allow you to invest part or all of your money in gold and other precious metals, they also let you gain physical control you’re your assets, meaning that, with certain conditions applicable, you can store your gold at home. This allows you to reduce the fees associated with having a gold IRA.
With a self-directed IRA, an independent business LLC is established with you listed as the owner. Your new self-directed IRA will invest your contributions in your LLC, which then capitalizes the LLC. It is at this point that the LLC can then purchase the gold that you want to invest is and then choose the appropriate storage method for the assets.
Advantages of the Self-storage IRA
The biggest advantage of having a self-directed IRA is that it allows you more control over your investment decisions. By removing the need for a third party custodian, you are no longer subject to the various internal procedures and fees that they require in order to store your gold for you.
In addition, having a self-directed IRA gives you greater control and discretion over the types of investments you make. For example, you can choose to invest all of your contributions in gold. Or you can choose to invest a portion of your cash in gold while purchasing real estate, stocks, bonds, or other types of investments with the remainder. Self directed IRAs are one of the only retirement account options that offer this much autonomy in the investment selection process.
Disadvantages of Self-Directed IRA
Unfortunately, there are disadvantages to having a self directed IRA. They do require you to have a greater knowledge of markets and sound investment strategies in order to be successful. Some self directed IRA owners overcome this challenge by hiring a financial expert to help guide their decisions, however this process can be expensive. A similar result can be achieved for less using another type of IRA.
All in all, self directed IRAs can offer you the ability to be more active in your retirement savings strategy and offer you the ability to grow your savings faster. If you are interested in learning more about the benefits of owning a self directed IRA, visit https://goldcopreciousmetals.com/self-directed-ira and review the self directed IRA FAQ made available by Goldco Precious Metals.
Want to learn more about the benefits of owning a self directed IRA? Visit Goldco Precious Metals today and review their self directed IRA FAQ.