What is a Self-Directed IRA?
The Self-Directed IRA was also authorized by Congress in 1974. A Self-Directed IRA is the same as a Traditional IRA. It is just set up to hold some non-traditional asset, like real estate, farms and ranches, closely-held businesses including partnerships and LLCs, cryptocurrencies and tokens, venture capital investments, hedge funds, private placements, private money partnering, equipment leasing, and a wide variety of other assets. These nontraditional types of investments are called alternative asset classes.
Why is my financial advisor not talking to me about this?
Most Wall Street financial advisors get paid to bring investments into the company. If they are commissioned, they can only get compensated for selling the investment products that their company sells and is equipped to handle.
So even if your retirement portfolio is woefully underweighted in, say, real estate, your financial advisor typically has no interest in convincing you to purchase real estate. In fact, if they do, their parent company could fire them for “selling away.” That is, selling assets outside of their company.
In many cases, financial advisors and brokers are not even aware of the advantages of Self-Directed IRA investing, and they know little or nothing of how it works.
********************************* If you are reading my blog for the first time, let me inform you that… My company buys single-family houses and I write this blog weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments, i.e. people that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where we get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with us to provide the funding which empowers us to be able to purchase real estate on a continual basis. Simple, it’s because we teach them a secured way to earn better rates of return than they are currently earning.
So everybody wins. It’s a WIN-WIN-WIN !!!
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position.
Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).