January 17, 2024

Cozy Up This Winter with a Self-Directed IRA BLANKET

Written By: Daniel Gleich

Key Points 

  • Investing with a Self-Directed IRA (SDIRA) is like cocooning yourself in a blanket. You can feel at ease acknowledging your retirement savings are close to you and under your control.
  • As the account holder, SDIRAs let you take the reins on your investment. Choose the alternative asset class you prefer to invest in and instruct your custodian where to send your funds.
  • Self-Directed IRAs offer advantages that are otherwise not necessarily attainable through other forms of investment. Some of these are deciding how your money will grow in your account and the speed at which you can invest.
A woman drinks tea and reads a book, as she cozies up under her Self-Directed IRA BLANKET.

Icy winds, flakes of snow, or just the sun setting earlier – we all have our reasonings for staying indoors. Whether we’re snuggling with our significant other or watching a movie with some snacks, we often reach for a blanket to self-soothe and stay warm this time of year. Just like you can wrap yourself in a blanket to keep yourself warm in the winter, you can wrap yourself in a Self-Directed IRA blanket to cease any unease you feel about planning for retirement. 

Preparing for our retirement is simple with the power of Self-Directed IRAs. Particularly, with the benefits presented by the acronym, “BLANKET.” If feeling weary about the future, reach for your favorite quilt and remember the charge of the SDIRA BLANKET. 

Wrap Yourself Up in a Self-Directed IRA BLANKET infographic, listing all the benefits an SDIRA gives its investors.

B: Barrier Against Inflation

Wall Street products, such as stocks and bonds, tend to increase and decrease in value according to the stock market’s whim. Many alternative assets are accessible through a Self-Directed IRA and are typically uncorrelated in performance to Wall Street products. Your alternative asset appreciation is generally determined by your asset industry’s trends. As a result, it may be easier to devise a plan of action when it comes to your alternative investment. 

L: Lavish in Tax Advantages

A folder and graph perched on top of a desk, with a post-it note labeled “tax advantages.” This indicates the tax benefits available through a Self-Directed IRA, including your money growing tax-free or tax deferred.

Self-Directed IRAs allow the account holder to decide on how they reap their tax advantages. When establishing your retirement account, you can choose between a Self-Directed Traditional IRA (tax-deferred growth) and Self-Directed Roth IRA (tax-free growth). 

A: Assortment of Alternative Assets

Limitations are few and far between regarding the types of investments you can hold with a Self-Directed IRA. Set your sights beyond your vision, as the variety of asset classes are boundless. Real estate, precious metals, private businesses, and promissory notes are just an introduction to all the prospective investments accessible. Self-Directed IRAs let you follow a passion, invest in said passion, and use that to gain potential accruement for your retirement. 

If you generally fluster at the thought of crunching numbers, don’t abandon the idea of investing in the future with a SDIRA. A path towards potential savings success is possible by investing in a field that makes sense to you.  

With a Self-Directed IRA You Can Invest in a Combination of Alternative Assets infographic, showcasing the wide range of asset classes that are accessible.

N: Nimble Investing in Real Time

A clock, sitting on top of wads of cash and coins, showing how garnering Checkbook Control can allow you to purchase investments in real time and potentially increase your retirement savings through a Self-Directed IRA LLC.

Good news for those who love the excitement of fast-paced retirement investing. Opting to perform numerous transactions through your Self-Directed IRA on your own time is feasible with checkbook control. Acquiring checkbook control will upgrade your account to a Self-Directed IRA LLC.  This gives you the litheness to invest in real time without the need of your Self-Directed IRA custodian for everyday transactions. 

This is ideal for real estate investors who rent out several properties or who invest in fix-and-flips. Earnings through these investments could possibly provide supplemental income that can be used to satisfy future required minimum distributions (RMDs). This reduces a step when planning for how to allocate your retirement savings in the years ahead. 

K: Keep it Under Your Control

As the account holder of your Self-Directed IRA, you to have say on every transaction made. You will direct your IRA custodian to send a check or wire funds to your investment. If you choose to upgrade your SDIRA to an IRA LLC, you will be the non-compensated manager and sole partaker in your account’s operations. 

You are the supervisor of your retirement savings. You can invest pertinently for your future, based off your knowledge and interest. 

A key sitting in a door lock, showcasing how with a Self-Directed IRA, you, as the account holder, get to take control of your investment.

E: Expand Your Retirement Savings

Sprouting your savings is possible with a Self-Directed IRA. Every asset class industry has trends, and it's considered best practice to educate yourself on the intricacies in your chosen terrain. With proficiency and patience, you can potentially observe the expansion of your retirement savings. 

T: Thrive

A woman sits under her blanket as she snuggles with her dog and checks on her appreciating investment through her Self-Directed IRA Custodian.

Although investing with a Self-Directed IRA can help you thrive during retirement, a diversified retirement portfolio can possibly benefit others. Your savings can help your loved ones and community potentially flourish. This is possible through naming a spouse or family member as a beneficiary and leaving behind an Inherited IRA.  

You can also possibly assist in your community burgeoning by selectively choosing the investments your SDIRA will participate in. You can choose to fund a small business, help build homes in low-income areas, use farmland to grow food, or fund solar energy. The opportunities for helping are abundant.  

Conclusion: Nuzzle into Your Ultimate Retirement

Employing the Self-Directed IRA BLANKET can possibly grant tax advantages and provide a hedge against inflation. You single-handedly behave as the commander of your retirement savings, implementing all decisions on behalf of your future. Coordinating this with the ability to jump on investments with speed creates the potential for substantial returns.

A piggy bank and two little piggies cozy under a blanket, because when you invest with a Self-Directed IRA, you can rest easy knowing you’re preparing for your retirement.

Want to wrap yourself up in an SDIRA blanket? Schedule a Discovery Call with a Self-Directed IRA Specialist at Madison Trust to learn how. 

Disclaimer: All of the information contained on our website is a general discussion for informational purposes only. Madison Trust Company does not provide legal, tax or investment advice. Nothing of the foregoing, or of any other written, electronic, or oral statement or communication by Madison Trust Company or its representatives, is intended to be, or may be relayed as, legal, tax, investment advice, statements, opinions, or predictions. Prior to making any investment decisions, please consult with the appropriate legal, tax, and investment professionals for advice.

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