Access Untapped Investing Potential with a Self-Directed IRA

Today's article is a guest post brought to us by Alex Mednick of Madison Trust Company.

Good Intentions

In a recent survey conducted by Deloitte, 97% of global investors expressed their intention to increase investments in real estate over the next 18 months. Why? Because real estate remains one of the last investment categories with attractive total return and income generation potential.

Conversely, did you know that only 2% of retirement accounts in the U.S. are self-directed? This means the rest of them are confined to stocks, bonds, and mutual funds on Wall Street and are unable to be invested in real estate. In fact, too often even the most experienced investors are unfamiliar with the concept of Self-Directed IRAs and 401(k)s.

An Appealing Option

If you are an experienced investor, or interested in entering the alternative investing space, you should know all the options available to you. One that many investors generally are not aware of is the capability of using retirement funds to invest in less traditional alternative investments off Wall Street. Despite it being a legal and decades-old tool, the Self-Directed IRA is an unknown commodity to most Americans.

The ability to pivot off Wall Street with your retirement investing is very appealing for those who feel more confident putting their money in companies that deal in actual real estate. They understand that world better and harbor less concerns about market swings and the impact of economic downturn. Investing in an alternative asset like real estate with your IRA is likely something you never thought was possible, yet it is being done by savvy investors more and more as awareness of Self-Directed IRAs increases.

For example, a real estate investor is pleased with her returns and eager to invest more, but her personal funds are tapped. The process of passively investing in a rental property without the burden of managing it is especially simple and appealing to the investor as well. Fortunately, the Self-Directed IRA solves her problems by allowing her to utilize her retirement funds for alternative investments.

Instead of languishing in her volatile and stagnant traditional account, the investor’s retirement money can be invested in real estate, the investment class with which she has been experiencing proven success. The ability to diversify her portfolio has the investor much more comfortable with the stability of her retirement and excited to seek out the next investment opportunity.

Your ability to invest in nearly anything you want, not just real estate, is as straightforward as it is prosperous.

You're in Control

By investing in a Self-Directed IRA, you can utilize your retirement funds in ways about which traditional investing firms such as Fidelity, Charles Schwab, Vanguard, etc. intentionally leave you in the dark. Those companies often fail to inform you about self-directed investing due to it not being in their best interest financially.

Rest assured, however, a Self-Directed IRA is often the most powerful tool an investor can have. Simply put, it is a tax-advantaged retirement account that keeps no investment opportunity off-limits, save for collectibles and life insurance. The IRA is held by a custodian, just like a traditional one, except you are fully free to build your portfolio with investments you have more experience and familiarity with, as opposed to the complex and volatile stock market.

The empowerment investors receive by investing in a Self-Directed IRA often lead to better choices, as their confidence in their investments is likely higher. The stock market is often complex and anxiety-inducing for those who aren’t experts. Many find themselves thinking, “I wish I could invest my retirement in something I know well.”

If you are one of these investors, a Self-Directed IRA perfectly suits your needs.

A Painless Process

Through a simple process of transferring the IRA funds over from your current custodian or rolling funds over from a previous employers 401(k) plan, your Self-Directed IRA will be primed and ready for the exact investment that you are interested in. When you make that decision, the last step is to authorize your custodian to complete the transaction.

With the same ease which you would be passively investing your money in the usual Wall Street assets, you can be more confidently investing in alternative investments that possess the opportunity for greater returns. Additionally, you simply feel better about where your money is being held. Your retirement funds are extremely important and precious; its stability and potential for growth should be catered for that level of importance.

The Self-Directed IRA is not just a powerful tool that could help maximize your retirement, but also a tool that can deliver you peace of mind. Don’t settle for uncertainty when thinking about your retirement. Take control of your investments and make money in the best way you know how with the Self-Directed IRA.

Madison Trust Company (“Madison”) is a passive Self-Directed IRA custodian, and, as such, does not provide investment advice, sell investments or offer any tax or legal advice. Accordingly, Madison is not a fiduciary.  Madison is not affiliated with any financial professional, investment, investment sponsor, tax or legal advisor. It is not Madison’s responsibility to review the prudence, merits, viability or suitability of any investment directed by clients or to determine whether the investment is acceptable under ERISA, the Internal Revenue Code, or any other applicable law. Clients or potential clients are advised to perform their own due diligence in choosing any investment opportunity and/or professional to assist them with an investment opportunity. Interested in learning more about a Self-Directed IRA? Call Madison Trust at (845) 947-1000 or get started at


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