Self-Directed IRA Sacramento CA

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Investors are increasingly turning to assets beyond traditional stocks and bonds. Fueled by stock market volatility and their growing sophistication, many are looking to invest in real estate, private stocks, hedge funds and other investments with an individual retirement account (IRA). Such investments made through a self-directed IRA can provide greater flexibility and control over the investments held in an individual's retirement account.

Self-directed IRAs, which have been around since 1974, are within IRS guidelines. And while they are quickly growing in popularity, they still account for only a small percentage of the almost $4 trillion held in retirement accounts today. Though they were once little-known, self-directed IRAs are becoming more mainstream for their ability to offer greater diversification and investment potential and to offer informed individuals the ability to invest in things with which they are familiar.

Why set up a self-directed IRA?

Like traditional IRAs, self-directed IRAs allow taxes on assets held inside the IRA account to be deferred or postponed until the money is withdrawn from the account. With alternative investments, account owners can take a more proactive approach toward improving investment returns because they can choose assets that are not publicly marketed. Real estate investors, for instance, can capitalize on their knowledge of an area and/or market by investing in local property or a resort-style home in an up-and-coming area. Investors in private stock can capitalize on their knowledge of emerging companies and industries. Additionally, taxes on appreciation and rental income are deferred, so an investor can grow his or her portfolio at an even faster rate.