Jill Chodorov discusses the benefits of a self directed Individual Retirement Account (SDIRA), which allows for alternative investments using your retirement savings. It’s not for everyone, she says, but it’s best for people who have knowledge or expertise in real estate. There are a number of different rules and regulations in the use of a SDIRA, but despite the risks, they have become increasingly popular.
The article begins as follows:
The nauseating drop in the value of my retirement accounts in the last month got me thinking. Why can’t I invest my retirement funds in what I know and understand?
I know real estate. I have been investing in real estate and servicing clients as a licensed real estate agent for two decades.
I don’t know the stock market.
Every year at tax time, I dutifully deposit the allowable contribution into my Individual Retirement Account (IRA) to lower my income tax liability. And every year I repeat the annual glassy-eyed review of the cryptic stats and financials of the funds in which I invest.
So I launched a quest to devise a new investing strategy for myself, and I learned that there is a little-known investment vehicle that would allow me to invest my retirement funds in what I know best — it is called a self-directed IRA (SDIRA).
Find the article here
Posted by Pooja Shivaprasad, Associate Editor, Wealth Strategies Journal