An IRA, or individual retirement account, is a way for you to save your own money for retirement. A self directed ira ,as the name emplies, allows you to have complete control over your finances. You control how much of your pay goes into the account. There are certainly both advantages, as well as disadvantages to a self directed IRA, but one thing is for certain; they are crucial if you want to set yourself up for a good life after you stop working.
The great thing about a self directed IRA, is that you are the one who controls your money. You do not have to abide by an employer’s or other company’s rules. This means that you decide how much of your pay check will go into your retirement fund. Many people prefer this because they want to be in control of all of the money that they have worked so hard for. This is understandable because when it comes to time to retire, you can take ownership. right or wrong, of the retirement contributions. Since you are the one who decides how much to contribute, you are the one who must accept responsibility for the outcome.
Another reason why people prefer a self directed IRA, is that they do not want to have to ask permission to gain access to their own funds. Let’s say you have an emergency bill that you must contend with. Perhaps the best thing to do is to access your IRA to help with the costs. In dire emergencies, this might truly be the only option that you have. However, if you allow another company to control your retirement, there is a good chance that you will encounter issues if you try to withdraw it. Avoid this issue by controlling it from day one.
When you control your IRA, you do not have to worry about it becoming stolen. There have been accounts that have been hacked or stolen in the past. These accounts are not backed by institutions, so why not save the money yourself? When you open a separate IRA, it allows you to keep close tabs on what is happening with your money. You will not have to guess what is going on with it, and you will have complete freedom to withdraw it as you please. Knowing where your money is located offered you peace of mind.
Perhaps the most important reason to have a self directed IRA, however, is because adults should not feel like they need someone to babysit their money for them. if you are truly concerned about maintaining your own money as an adult, then you probably need to go to a financial planning class to get the basics down. It is not hard to plan for the future if you have a decent job, and a willingness to leave your money alone over time.
Keyword: self directed ira