How Self-Directed IRAs Give You More Flexibility and Tax Benefits

The only way that you and your spouse will be able to enjoy a retirement that is comfortable and free of uncertainty is by planning now. Working with financial and retirement planning professionals offers many benefits. They can look at your current income and recommend investment options that will help you enjoy the retirement you are dreaming of.

There are a variety of benefits that come from using self-directed IRA real estate accounts. For example, you get more flexibility. You are not able to invest in collectibles or life insurance with this option. However, you are only limited by your imagination with a self-directed IRA as far as investments go.

A self-directed IRA real estate option offers tax benefits. It is important to determine if you would like a traditional IRA or a self-directed Roth IRA. With a traditional IRA, you get an upfront tax break. You don’t pay taxes on the money until you use it in the future. Self-directed Roth IRAs are funded with after-tax money. Consider the pros and cons associated with both options.

It is important to have financial discussions with your spouse. Getting on the same page regarding budgeting, savings, and retirement goals is essential to enjoying success. It will determine how the money you have now will affect your future. For example, if you are both determined to enjoy a comfortable retirement, you may work hard to pay off your mortgage. Once the mortgage is paid off, you will have more money to put in your retirement accounts and fewer expenses associated with housing after retirement.

Sharing is caring!