IRA Investing
A self directed IRA is one of the best ways to invest your money if you are the type who likes to be in direct control of your money. Unlike a traditional IRA you have many more investment options that you can choose from. You don't have to stick to mutual funds or stocks and you can make the investment decisions.
Instructions
Instructions On Investing In A Self Directed IRA
1. Decide what types of investments you are interested in before starting a self directed IRA. Different financial institutions offer different markets for investment. For example if you are interested in investing your self directed IRA into real estate, find a custodian which has experience handling real estate investments in a self directed IRA.
2. Find a custodian for your IRA and designate a beneficiary. This is usually your spouse or children.
3. Fund your IRA and wait four to six weeks to be certain all the paperwork is in order. Allow a little more time if you are transferring IRA funds from another institution.
4. Invest your money in whatever way you chose. Real estate is a popular investment for self directed IRAs. Investing in mortgages is also a good option for income.
5. Leave enough funds in the IRA to pay for any fees or taxes associated with your investment as all costs must be funded from the IRA. For example, if you choose rental properties to invest in, you must allocate enough funds for repairs and property taxes.
6. Consider using your IRA to invest in a privately owned company. This is a terrific way to be a silent partner in a start up company.
