Investing Using Retirement Accounts
Looking for a way to invest tax-deferred, or even tax-free? Well then, this strategy will really get your attention.
If you want to invest for your retirement, you may be able to invest with before-tax funds in a Self-Directed Individual Retirement Account (SDIRA). Regular IRAs are typically limited to only certain investments, such as CDs and mutual funds. The SDIRA, however, allows you to make investment decisions and choose the assets you want to have placed in your portfolio. This means that you can invest in nontraditional investments like real estate. IRS regulations do require that a trustee or qualified custodian holds the IRA assets on your behalf, so be sure that the custodian you select does in fact allow real estate investments.
Such accounts are also referred to as a Qualified Retirement Plan or QRP. There are only certain companies around the country that allow you to set one of these up for yourself—where you have total control. You see, while the large firms certainly manage and maintain retirement accounts, they make their money only through commissions and fees.
There are no commissions or fees when you buy tax lien or deed investments! Since there is no incentive for the large firms to research, market, or sell these to you, very few of them offer that option.
But there are many companies that will allow you to set up an account and control your own investments. Will they charge you a fee? Of course! But it will be a nominal ...
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