Retirement Planning With A Self Directed IRA
One thing that financial planners won’t tell you is that with a bit of self-education, you have the ability to do a better job of investing your retirement dollars than those who promote their services, just for a commission on the sale.
Many facing retirement in the near future have found that a self-directed IRA fills their needs for a secure financial future. What you need to direct the investment of your IRA dollars is a custodian that doesn’t care how you invest the monthly contribution so long as you don’t put the funds into a prohibited investment.
As per legislative fiat, you are prohibited from investing or lending IRA funds for your personal benefit outside the IRA. For example, you can’t purchase a house with IRA funds for your personal residence. But, you can purchase a house with your IRA funds and then rent the property, deducting expenses and scheduled depreciation from gross income.
Any appreciation on this real estate asset is deferred until sale of the unit, an advantage to minimize capital gains taxation until after you retire and enter a lower tax based lifestyle.
For more on this topic, check the Wikipedia article on “self directed IRA“.

Posted January 30, 2008
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