Whether or not your parents took the time to teach you how to make money and take care of money, it is your responsibility and your right to learn everything you can about it.
Considering how hard most citizens work for money most of their lives, you would think that they would want to learn more about it. Yet, somehow the knowledge of the rich is still considered mysterious, only for those born to wealth, or those who are greedy.
Most Americans are aware of only a fraction of the power IRAs hold. That includes most people who have IRAs. Ask many financial advisers how to set up a checking account for your IRA and they'll think you're joking or uneducated.
While many financial institutions use the term self-directed when describing IRA investment choices, they actually mean the ability to choose between a few investment categories such as stocks, bonds, and mutual funds - the ones they're in business to promote.
What about other investment opportunities such as real estate, funding mortgages, and buying tax certificates?
Taking advantage of these opportunities is simple when you know a.) it is possible, and b.) choose the right custodian who can give you actual control of your retirement assets.
With checkbook control of these assets (run through a business entity), you can take advantage of a hot opportunity in the real estate market, then seamlessly move your money back into more traditional securities, stocks and mutual funds when the real estate peaks.
The IRS allows you to use leverage together with your retirement money, which can increase your returns significantly by enabling you attract larger deals.
Obviously choosing the right custodian for your retirement funds is extremely important so here are a few summarized tips.
Look for a custodian who:
a.) understands that a self-directed fund means you have a checkbook with access to those funds.
b.) understands and can explain a multi-faceted portfolio
c.) Does not restrict your use of leverage money.
Be proactive with your retirement account. Lots of people want your money even more than you do but you are the one who worked for it.
Don't wait until you retire to learn how to take care of your money. That is when it should already be taking care of you.
