The Pros and Cons of a Self Directed Account

Taxes. While we don’t have a choice in paying taxes, we can legally shelter some of that income from escaping our pockets. One way includes the self-directed IRA.

An IRA is an individual retirement account. If you work a job with benefits, your employer may sponsor an IRA. It was developed as a tool to help people save for retirement and many income tax incentives are offered as encouragement to save.

You do not, however, have to be employed in a full-time job or work for a big company to enjoy the benefits of an IRA. Self-employed real estate investors can also get in on the tax benefits of having an IRA. Every individual or small business owner has access to what are called self-directed IRAs. And these self-directed IRAs can be a great wealth building tool.

How?

By controlling what the IRA invests in. (Read more...)

https://www.biggerpockets.com/blog/self-directed-ira

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