Since 1974 the United States has used the IRA to save for retirement. IRA’s are tax deductible and grow tax-free, which make them a vehicle for savings that is very appealing. IRA’s are pretty much all self-directed but you will not see that on the IRS’s website. A self-directed IRA provides you with diversification benefits in which you get to decide how to manage and build your portfolio. You can invest in real estate as well as stocks with your IRA and many feel comfortable with that option. Many Americans are not comfortable with the self-directed IRA because you are solely responsible for your decisions. You need to do your research, but most importantly, having the ability to save on your taxes while earning money makes the IRA a popular alternative.
Key Takeaways:
- Self-directed IRAs allow people to diversify their investments and only invest in the things they want to
- Self-directed IRAs give people more opportunity to invest in hard assets
- However, a self-directed IRA might be too much responsibility for someone to handle on their own
“Unlike health care and Social Security, which create great tension and controversy among Democrats and Republicans, the current retirement system remains popular and bipartisan.”
Read more: https://www.forbes.com/sites/forbesfinancecouncil/2019/08/09/the-case-for-the-self-directed-ira/
