Self directed ira details will reveal a stunning amount of possibilities for investments with your retirement funds. Believe it or not, you can actually take control of your retirement funds, and be better off than you ever thought possible with a self directed IRA.
Pension plans are great for employees. In many of them, the employer will match a certain percentage of employee contributions. Of course, the amount you can invest in a pension plan is usually limited to a few thousand dollars a year – usually under $10,000 – but with a little bit put in by your employer, it helps to increase the bottom line, right?
But, what do you do if the company goes under? Remember Enron and Hostess? They had a great pension plan for their employees. In fact, it was so good, that the executives dipped into those pension plans and used the money for themselves. When the companies went bankrupt, the employees lost what little of the pension funds were still left.
Not only that, but as you study self directed IRA details, you will find that they are far superior to pension funds because you control the investments. Your boss controls the investments of the pension funds that his business offers. And, you have to pay administration fees for it.
Self Directed IRAs
In contrast, check out these self directed IRA details. With a self directed IRA, you can contribute as much as $57,000 a year if you are over 50! That is more than 5 times the allowed investment for most pension plans. If you are under 50, you still can contribute a whopping $50,000 to your own IRA.
This resolves a great number of problems for people looking for ways to protect their own inheritance. Say you have inherited a lump sum of money, or received it in a settlement. The government will get most of it in taxes, but you can put it in your IRA instead. With the higher limits of self directed IRAs, you can sell your business and put the profits in your retirement fund. A safe place to invest large sums of money is perfect for those who come into a lump sum.
In addition to having higher limits on deposits, you can also decide where your own money is being invested. Most pension funds are managed by a company, and all of the funds are invested for you into stocks and bonds. You cannot sell stocks you do not like, or buy stocks you do like.
However, with a self directed IRA, you have control over where your money is invested. Sure, you will still want stocks and bonds, but now you can invest in real estate and precious metals, too. You can also invest in small businesses, if you do not own them. All of the profits go into your retirement fund, and you do not have to pay taxes on them.
Self directed IRA details should cover all of this, and instruct you how to make the most of these investments.