Why More Investors are Choosing Self-Directed Roth IRAs

Roth IRAs are popular. Very popular. Investors across the entire U.S. frequently turn to Roth IRAs because of their ability to use after-tax money to invest in retirement assets, making it simple and easy to hold on to more of your money in retirement years. But what about Self-Directed Roth IRAs? What additional benefits come out of directing your own account and exercising more of the freedom you can hold with an IRA? Here’s what you’ll need to know about why more investors are choosing Self-Directed Roth IRAs these days:

Tax-Free Growth with Even More Options

A standard Roth IRA already provides a powerful advantage: tax-free growth. Once you contribute after-tax money, your investments grow—provided you invested wisely, of course. After they do, you can withdraw them tax-free in retirement. A Self-Directed Roth IRA takes this benefit to the next level by allowing you to diversify your investments into alternative assets like real estate, private equity, and precious metals. In short, you’ll get to choose more of your own paths to retirement with a Self-Directed IRA.

More of a Hedge Against Market Volatility

One reason investors are turning to Self-Directed Roth IRAs? Their ability to hedge against market volatility. Traditional investments like stocks and bonds can experience significant ups and downs, leaving investors feeling vulnerable. You don’t have to feel vulnerable. A Self-Directed Roth IRA lets you explore assets like real estate, which historically has a lower correlation to the stock market.

Unique Opportunities for Real Estate Investors

Real estate continues to be one of the most attractive options for Self-Directed Roth IRA holders. Why? Because real estate investments within a Self-Directed Roth IRA can offer incredible long-term tax benefits. Imagine purchasing a rental property with your IRA, collecting rental income over the years, and eventually selling the property—all without worrying about taxes on your profits because it’s within a Roth IRA.

Greater Control Over Your Financial Future

Self-Directed Roth IRAs appeal to investors who want to take charge of their financial future. With a standard IRA, your investment choices are often dictated by your brokerage or financial advisor. But with a Self-Directed Roth IRA, the power is in your hands. Want to invest in startups? You can. You can also think about venture capital, tax liens, or even cryptocurrency. A Self-Directed Roth IRA gives you the control to create a retirement portfolio that matches your specific tastes, experience, and goals.

Benefits for the Next Generation

Another reason more investors are choosing Self-Directed Roth IRAs is their unique estate planning advantages. Roth IRAs don’t have required minimum distributions (RMDs), meaning you can allow your investments to grow tax-free for as long as you live. When passed on to heirs, the account maintains its tax-free withdrawal benefits, though there may be some limitations.

With a Self-Directed Roth IRA, you can pass on a portfolio of alternative investments, providing your heirs with valuable and diversified assets that continue to grow tax-free.

Is a Self-Directed Roth IRA Right for You?

While Self-Directed Roth IRAs come with incredible benefits, they’re not without responsibilities. You’ll need to stay informed about IRS rules, avoid prohibited transactions, and ensure your custodian supports your chosen investments. However, for investors seeking greater control, tax-free growth, and the ability to diversify into alternative assets, Self-Directed Roth IRAs are a big-time choice for investors who want freedom and control.

Want to learn more about how it all works, and how you can start using a Roth IRA to help you in retirement? Reach out to us here by dialing 866-7500-IRA.