The problems:

Many people will ask: "Where do I get the money from, my deposits, IRA's, Keough...what?" The answer is "Yes!"

If your money is in CD's or other accounts all you have to do is follow your institution's rules for withdrawal. If your money is in an IRA or other investment instrument read the info to the right:

Links:
FAQ's from Safeguard Financial:
http://www.ira123.com/self-directed-ira-faq/
Wikipedia:
http://en.wikipedia.org/wiki/Self-Directed_IRA
Self-Directed IRA:
http://www.selfdirectedira.org/
Setup above:
http://www.selfdirectedira.org/index.php/sdira-setup
How it works:
http://www.selfdirectedira.org/index.php/how-it-works

From Trump University:

Supercharge Your Retirement!
Self-directed IRAs: Investment Vehicle of the Rich

Where is your retirement money? And how much are you earning on it? If you're settling for poor returns with stocks, bonds, mutual funds, or CDs, you need to reevaluate. Many savvy investors are putting their money into high-yielding, real estate-backed investments where they don't have to sweat the volatility of the stock market.

You could be doing the same. In fact, anyone can. The secret is self-directed IRAs!

Self-directed retirement accounts have been around for several decades, but they have only recently gained popularity. And even at that, "popular" is a relative term. While more than 40 percent of the population holds some type of IRA, it is estimated that less than one percent take advantage of a self-directed account.

The Self-directed Retirement Plan
So what is a self-directed IRA? To understand, let's first look at traditional retirement plans. Most retirement plans [Traditional IRAs, 401(k)s, etc.] restrict their investors to a mix of stocks, bonds, mutual funds, CDs, etc. This probably sounds familiar to you.

Not a self-directed account. A truly self-directed retirement account empowers you to invest in ANY assets that are not prohibited by the IRS. What kind of investments do they allow? Almost anything! Most self-directed IRA custodians accept:

Real Estate Notes and Mortgages (or Trust Deeds)
Contracts for Deed
Mobile Home Notes
Business Notes
Automobile Notes
Secured or Unsecured Loans
Investment Real Estate
Options on Real Estate
Lease Payments
Tax Lien Certificates
Accounts Receivable Financing
Invoice Factoring
Limited Partnerships and LLCs
Traditional Stocks, Bonds, CDs, and Mutual Funds
And the list goes on!
Imagine trying to invest in those with your current IRA custodian!

Self-directed Key Facts
Setting up a self-directed account is not difficult. You can use direct or rollover contributions from your current retirement accounts to fund it. But before you do so, here are several key facts you should know:

Self-direction is a specialized field and there are only about a dozen or so companies who offer it. A search of the Internet will reveal custodians (also called administrators) who offer this service.

When self-directing retirement funds, it is important to verify that the investment meets IRS guidelines. Most collectibles are disallowed by the IRS. Here is the list of things the IRS says you may NOT invest in:
Works of Art
Rugs
Antiques
Metals
Stamps
Coins
Alcoholic beverages
You can legally access your existing IRA, 401(k), 403(b), or other retirement funds and rollover those monies to fund your self-directed account.

Why Self-direct?
There are two primary reasons people choose to self-direct their retirement accounts:

They want control over their investment decisions rather than relying on someone else to decide what is best for their retirement account. As we often say, "No one cares about your money like you do."
They want to tap into higher rates of return often available through nonstandard investments.
You may not realize you can have more than one retirement account. The fact is, you can have dozens. For example, you can have a traditional IRA account, a Roth IRA, and a self-directed IRA--all while participating in the 401(k) at your place of employment. So don't think it's all or nothing when having a self-directed IRA.

Check with your CPA for specific IRS rules, but the government is generally pretty generous with allowing you to secure your retirement the way you want. That's why there's no reason for you to settle for poor returns or stock market volatility. With self-directed retirement accounts, you can REALLY diversify. Have fun with the process and watch your accounts grow.

Article link is here.

 

   
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