Self-Directed IRA: Tool to Help in Retaining More Money

Property Management Blog

As a real estate investor, you can hope to make lots of money. But what matters is not your income but how much you can retain by the IRS.  Apart from taxman, others looking at your money are the contractors, your tenants, and the stores form where you buy your supplies from. You must work hard to keep the money you earn in your pockets. This requires adhering to best business practices and complying with the tax rules.

Keep both the IRS as well as your IRA happy

You cannot wish taxes away, but you can learn more about tax rules to know how you can save more of your income. One great tool in achieving your financial goals is self-directed IRA. It is a saving plan like 401K that allows you to invest your money in stocks and bonds. The phrase self-directed says a lot about this mode of investment. It means you have the liberty to choose the mode of investment such as real estate. You can exercise better control over your portfolio and hope to earn higher returns from your IRA. What is more, it also allows you to save your money being taken away by the taxman.

Self-directed IRA is a very powerful investment tool. If you recall, the size of self-directed IRA of Presidential candidate Mitt Romney in 2012 was more than $20 million. This gives you an idea of the kind of money you can save for your future. However, to be able to save big sum of money, you need to understand IRA rules better.

Book to help you understand the nitty-gritty of self-directed IRA

There can be no denying the fact that rules governing a self-directed IRA are complex. Anyone not having a full understanding of these rules can easily make mistakes and invite the wrath of the IRS. In fact, the IRS says that it is your responsibility to understand all the rules to make great investments and stay away from investments that are prohibited under the law. One book that explains the rules of IRA in easy terms is The Self-Directed IRA Handbook; Written by Matt Sorensen, this book has helped many individuals in saving lots of money and keeping it safe from the IRS. You will not learn methods of investment and how to make them from this book. But it will explain all the rules and what to avoid escaping penalties from the IRS. It is a good book even for those investors who have been using a self-directed IRA for some time.

There are many new tricks you can learn after reading this book form Mitt Sorenson. For example, you can learn how to set up different IRA’s for all the real estate properties you have in your portfolio. Also, it teaches you how to secure loans using your IRA. In short, this book on self-directed IRA teaches you to be more creative in your real estate deals.

You must keep in mind that it is your money that you must guard form the IRS. It will not be done by your attorney but you. This is exactly what you will learn after reading this book. Learn all the rules governing self-directed IRA to know how you can keep the IRS away from your pocket. Once you have understood these rules, you will be able to dictate to your attorney drawing up your financial statements. Buy this book today to not only save more but also to earn more from your real estate investments.

If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty. 

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