How to Leverage Your Self-Directed IRA Investment

Leverage Your Self-Directed IRA

By J.P. Dahdah, Founder & CEO of Vantage

Do you want to take advantage of promising investment opportunities but are reluctant to tie up too much cash at one time? How can you get the biggest bang for your buck?

People participating in a Self-Directed IRA are aware of critical ways to make their money work harder and legally avoid taxes on their earnings. Self-Directed IRAs, unlike brokerage IRAs, offer greater diversity in the types of investments available.

Leverage your Self-Directed IRA by seeking investments with higher returns. By participating in markets like real estate, precious metals, private-company equity, and private lending, investors can generate higher returns. These returns are owned by the Self-Directed IRA and are not subject to tax.

Leverage your Self-Directed IRA by seeking investments that protect against financial market stress – Today’s economic climate provides the perfect example of a bubble looming ahead. Increasing amounts of stimulus money coupled with a slowly growing economy and an ineffective government can add up to a formula that creates more financial crises. Savvy Self-Directed IRA investors look for ways to protect against problems like inflation and currency devaluation that would otherwise erode their wealth.  Gold, for example, has historically performed well during inflation.

Leverage your Self-Directed IRA by finding investment partners – Because bank loans are next to impossible to secure these days, many businesses are turning to private lenders. This is particularly true of real estate investors who face a tight lending environment and mounting regulations. Increasingly, real estate investors are turning to Self-Directed IRAs as a source of investment partners.

Such an arrangement can be an excellent way to leverage your Self-Directed IRA in several ways.

For example:

  • Your Self-Directed IRA can own equity in a property and share profits for only a down payment.
  • Your Self-Directed IRA can profit in the fix-and-flip real estate market without doing any of the work.
  • Your Self-Directed IRA can generate ongoing revenue and long-term equity for a relatively small investment compared to the property’s total purchase price.
  • By not purchasing the property outright, your Self-Directed IRA can afford to invest in multiple properties.

Understanding the current market conditions, investing in high-yield opportunities, and finding investment partners in a tax-protected fund can make your hard-earned cash work harder for you and generate greater returns.

Do you see the returns on your retirement account that will prepare you for retirement?

For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or Info@VantageIRAs.com.