Self-Directed IRA

Become Your Own Bank

The Self-Directed IRA (SDIRA) puts you in control of your qualified accounts such as IRA’s, 401(k)’s,  403(b)’s, Keogh’s, SEP’s and more. With a SDIRA you have the flexibility to invest in real estate, mortgages, businesses, franchises, tax liens etc.  This gives you, not Wall Street, discretionary control of investment options, whether traditional or non-traditional. A Self-Directed IRA is a retirement plan that allows the account owner to direct investment decisions on behalf of the retirement plan. Basically, an SDIRA is a unique hybrid tool that utilizes a self-directed IRA custodian and a specialized legal structure. With an SDIRA you will have a checkbook, a debit card and all the tools that come along with a business checking account.

The SDIRA owner can use his retirement funds for a multitude of investments providing a higher potential rate of return. All you need to know are the few things you cannot do and the rest is up to your imagination.

Here are some uses for a Self-Directed IRA:

Business Financing

•    The ability to supply business seed capital through an SDIRA
•    The business can be contained within the SDIRA set up as an LLC
•    Provides the prospective business owner a way to get funding
•    Franchisors are able to sell additional franchises
•    You essentially become your own bank so that you can loan the business money, set an interest rate, pay the IRA back and never go to a traditional lender.

Real Estate Investor Financing

•    The ability to supply capital through an SDIRA
•    The property can be contained within the SDIRA set up as an LLC
•    Provides the investor with a tax advantaged leverage
•    The IRA investor can grow their retirement nest egg through buying and selling properties with the gains
•    and the income is tax deferred
•    You essentially become your own bank

Your current retirement account is moved to a self-directed IRA custodian who allows alternative investment vehicles that pass their compliance and IRS scrutiny. To do this, it is highly advised you utilize an expert with experience in setting up and customizing your SDIRA.

Here’s the simple step-by-step approach:

1.    Your retirement account is moved to a self-directed custodian.
2.    A legal and accounting team creates a customized LLC and submits to the custodian.
3.    You open a business checking account for the SDIRA
4.    You submit an authorization form to the custodian instructing them to fund your new bank account.

Once this is done you will have absolute control over your new SDIRA and you can direct your investing efforts. This could be in the form of business seed capital, real estate investing, tax lien certificates, and even traditional stocks, bonds, and mutual funds.

2 thoughts on “Self-Directed IRA

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