Self Directed IRA Rules In Your Favor For Great Returns

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The self directed IRA rules have been around for more than 30 years, but most people still don't know anything about self directed IRAs. That's because most account custodians are bankers or brokers and they focus on what they know - CDs and mutual funds.

In today's world, we really need more investment options. The inflation rate keeps going up, but the rate of return on CDs and mutual funds has been flat, even during the best of times. Right now, the average five year IRA-CD rate is down to 3.69% and of course, we all know what's going on in the stock market.

The self directed IRA rules were created to give you (the person that hopes to retire at age 60 and still have a decent income for 20 years or more) the options that you need to make that a reality. Self directed IRAs can be invested in real estate, mortgage notes, tax liens, Limited Liability Corporations, and other vehicles that you might know and understand.

You can still invest in stocks and bonds. You just don't have to.

Over the last year, 401k account balances fell between 19 and 25%. Why? They fell because those accounts are tied directly to the stock market. The value of the account depends on the value of the stock.

If you rely too heavily on any one investment type, you are likely to either lose money or grow your balance very slowly... so slowly that by the time you retire, your money will have less buying power because of inflation.

People that made the right choices with their self directed IRAs earned 19%, 25% and more over the last year. Like you, they had to learn the self directed IRA rules, find the right custodian and learn about all of the opportunities that exist in the real estate market.

But it doesn't need to be a difficult lesson. It's actually pretty simple.

Transactions that are prohibited in self directed IRAs are those in which you or your direct family members are personally involved. Under the self directed IRA rules, the account can loan money and obtain financing, but the account cannot loan to - or borrow from - you or your direct family members.

Your direct family members include your children, grandchildren, great-grandchildren, parents, grandparents and great-grandparents. Your account could not buy an asset from any of those family members, but it could buy something from one of your siblings.

Your custodian should know how to properly title deeds, write checks, receive payments and file the necessary tax documents. Your custodian cannot give you investment advice. If you are inexperienced or don't know where to begin, you might want to join a group. At the very least, you should read more about profitable investment opportunities.

With self directed IRAs, you can grow tax-free wealth for your future, as long as you make the right choices.

Today is a good day to learn more about the self directed IRA rules and the best options for you.

Ray Stockwell is a real estate investor who enjoys making money by investing in projects that help people and their communities, all without capital gains taxes. Visit his web site at www.IRA-Investment.org

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