More Investors Investing in Tax Liens with a Self-Directed IRA

Before we discuss about investing in Tax Liens with a self-directed IRA, it is important that we first have a good understanding of what does Self-Directive IRA mean, and how would it benefit the owner or holder of an IRA or an “Individual Retirement Account?”

TAX LIEN SEMINARS, brings you the most necessary information that will give you enough understanding of how a Self-Directed IRA works:

• First, technically, a Self-directed IRA is not different from other IRAs or pension plans if you may say so. It is part and parcel of the TRADITIONAL IRA.
• However a Self-Directed IRA is unique because the OWNER is free to plan and choose his own investment.  In other words, the owner is in control of his Investment plan.
• Whereas, the usual traditional IRA is held by a custodian, including commercial banks and retail brokers.
• The Invested funds are under different investment schemes with the instruction of the account holder but the custodian will decide which investment vehicles are available.

It should be noted that just like a pension plan there are some restrictions on the amount of contributions, those qualified and up to what age can one be eligible to contribute. Basically, upon reaching 70.5 years of age you are not allowed to contribute anymore to a traditional IRA.

Read: Traditional IRA here.

MOST IRA custodians only allow investment on approved stocks, bonds, mutual funds and CD’s, which is commonly called “Certificate of Time Deposit” in other countries. A self-directed IRA can also qualify for yearly tax deductions, can provide asset protection that could even be passed to future generations for qualified accounts.

SELF-DIRECTED IRAs will provide security during your retirement.  Nothing can be more rewarding than to see yourself and your family well secured with your financial future.  Social Security, pensions and other investment schemes could be unreliable to support your retirement. The stock market is, at times, unpredictable, or just leaving your money in a bank account would allow inflation to take its toll in the coming years.

According to the CEO of American IRA, Jim Hitt, Tax liens are one of the best avenues available to investors today.  He added that tax lien is the highlight of a Self-Directed IRA   investment as it gives a lot of freedom and huge returns for investors who are willing to think outside the box. He considers tax lien investing as the primary example outside-the-box.

Therefore, the next best thing for you to do is invest your SELF-DIRECTED IRA in Tax Liens, which after all these years had been established as one of the most profitable investment vehicle for all ages. Tax Lien will provide you a good return better than most conventional assets like stocks, bonds, mutual funds and other investments you hear most about.