When it comes to planning for your retirement, a top priority is ensuring financial stability. However, in this same vein, it is important to plan appropriately so that you are able to make the most of your retirement. Rather than aiming to simply survive, it is advised that you take control of your retirement plan and aim to procure a more prosperous approach.

When considering your options, a self-directed IRA (SDIRA) may be a good choice if you want to directly influence your financial future in retirement.

 

What Is An SDIRA?

Put simply, an SDIRA is a kind of IRA that allows for more direct influence of the individual over the assets included within their fund. Rather than limiting the individual to stocks, bonds, or mutual funds, the individual can invest in other assets including real estate. Typically, an SDIRA allows for more diversification and individual influence over a retirement fund, which can permit individuals to achieve higher success with their investments.

 

Tax Benefits

Using an IRA for your retirement often comes with benefits when in regards to taxes. Choosing to use an SDIRA means you have tax-deferred or tax-free options which can promote greater growth over time.

 

Economic Fluctuation Protection

A diversified portfolio is often more resilient to drastic economic changes than a concentrated portfolio. Because of this fact, an SDIRA, which allows for a higher amount of diversification than other retirement plan options, is a strong choice for long-term financial growth with a lower degree of risk over time.

 

Growth Potential

By choosing an SDIRA, individuals have more options when it comes to choosing what assets they want to invest in. This means that they have control over how much risk they want to take on as well as how much potential for growth they would like to have. Naturally, this also means that individuals with an SDIRA could stand to lose more than individuals with other retirement plans, so those with investing experience or a reputable financial advisor will be at an advantage.

 

Real Estate Investing

Unlike most retirement plans, an SDIRA allows individuals to invest in real estate. Non-traditional assets like real estate can prove to be among the most profitable and sustainable in a portfolio, so for individuals looking to maximize their growth potential and effectively diversify their portfolios, an SDIRA is a great choice.