With the losses suffered by many in the stock market over the last year some investors are seeking a broader range of assets to invest in. The Self Directed Individual Retirement Account (when executed according to the IRS rules and regulations) is an option that will allow investors to purchase real estate using this special retirement account. By working with qualified professionals conversion from existing retirement accounts is an option to explore as well.
The Self Directed Individual Retirement Account commonly known as the Self Directed IRA is an IRA in which the owner of the account makes the decisions for the investing strategies. Similar to the 1031 Exchange, real estate investors must get qualified professionals to help give advice and set up a Self Directed IRA (ensuring compliance with the IRS tax code.)
Typically there is a custodian who can assist their clients in the various processes that must be followed so they know they are following the rules and regulations of the IRS. Conversion from more traditional IRA's is possible but only in working with the people who are qualified to help you handle your accounts correctly.
Not only does the Self Directed IRA allow investors to diversify their retirement accounts with a far broader range of asset types including real estate, but it can provide even more options because the real estate might only have a percentage of it under the self directed IRA.
By using a blend of funding sources, the real estate investor might increase their investment holdings because more funds are available to them and they might be able to utilize a property in a more flexible parameter where only the percentage of the asset under the IRA is dictated by those IRS guidelines. This is only a glimpse into the many options available to investors. To ensure complete compliance using this investment tool with the IRS (and thus no headaches down the road) it is critical to get consultation with qualified professionals in this field. Further this option may or may not be a good fit for an investor and so consultation with a very good and highly trusted professional in this field will help you determine if this investment vehicle is right for you.
Most custodians for Self Directed IRA's are more than willing to sit down with you to discuss how and what your options are utilizing these strategies. Most qualified custodians offer introductory consultations to explore this option at no cost to you. For interested Buyers and Sellers of real estate in Methow Valley including Mazama, Winthrop, Twisp, and Carlton Washington, the nearest professional services for Self Directed IRA's is located in Chelan, WA. Entrust offers webinars and seminars all around our local area. They also encourage you to make an appointment to discuss the options available to you personally. There are other offices and companies in Seattle as well that offer similiar services such as Guidant Financial with a website at http://www.guidantfinancial.com/