What do I need to know about a self directed IRA?

Key points every investor needs to understand before setting up a self directed IRA for investment, tax, and retirement purposes.
By: SilverStone.net
 
BELLEVUE, Wash. - April 9, 2013 - PRLog -- Self directed IRAs are a unique account designed to help investors utilize their investments for retirement purposes. These accounts are designed to help investors keep more of their profits and give less of their profits to Uncle Sam in the form of taxes. These accounts have many functions. Here are a few things you need to know about them:

·      There are limitations on the amount of money you can contribute to the account on a regular basis

·      Taxation will depend on whether you set up a Roth or a traditional account

·      They allow you to invest in public securities or in private deals, you decide

·      You can roll the funds from a 401(k) to an IRA

·      There are early withdrawal fees that apply if you dip into your funds prematurely

·      You have checkbook control of your investments

·      You cannot invest in deals that also involve in any way a disqualified person

These are just a few of the investment options available to you if you create a self directed IRA.  Here are a few other investment options available.

Since the economy is currently at its low, if investments and production were to increase this fund could gain value quickly.  The funds are invested in the production of many different material including mining companies, glass, paper, ext. Because gold prices are expected to continue to rise and the economy is expected to improve this could be a good investment.

Because utilities are a necessity of life, their demand is much more inelastic than most other commodities.  This basically means that even if we go through a recession people still need to have electricity and gas to heat and light their homes; plus they need water to drink and bathe.  This bears a no load, .17% management fee, and a .25% net expense fee.  This is a value fund with an average risk.

http://www.silverstone.net/how-do-self-directed-iras-work/
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Source:SilverStone.net
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Tags:Investments, Retirement
Industry:Self Directed, IRA
Location:Bellevue - Washington - United States
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