Do you know one of the best kept secrets in retirement investing? Self-directed Roth IRA's, that's right it's a Roth IRA that you can actually pick where your money goes and into which investments without someone telling you, "You can't do that". There is a limit to how much a person can contribute to a self-directed Roth IRA each year however there is no limit to how much your account can make each year.
This is the way this biggest kept secret works; you either roll-over money from other retirement accounts into a self-directed Roth IRA or you deposit money after taxes into the account and when you reach retirement age and pull the money out you get all of it TAX FREE. You can use the money to invest in REIT's (Real Estate Investment Trusts), Real Estate Investment Property, Hard Money Loans, Tax Sales or practically any other investment vehicle out there by simply having your custodian of your account write the check directly from your account to the destination investment (usually for a small fee). Once you have sold or completed your new investment all proceeds from that investment go directly back into your Roth IRA account which can then be placed into another investment such as the stock market or more real estate without paying taxes on your gain.
To learn more about this you can check out the following website:
http://www.raymondjame s.com/broch/iraroth.htm
There are many tax laws out there and I'm not a tax account so if there are any out there that can put additional information then please do!
Learn more about this author, Tim Taggett.
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