5 Mind-Blowing Facts About Retirement Planning
Have you ever thought about how you can enjoy your life even after retirement? At a time when all a person wants to do is relax? Well, you are not alone because this thought crosses every person’s mind at some point in their lives. The sooner you decide to get a good retirement plan, the better off you’ll be when the golden years of your life roll around. As with any major decision in your life, you’ll want to do a lot of research so you don’t end up regretting something that could have been so much better if you’d only made a little change. Here are five facts you probably didn’t know about retirement planning, so you can help yourself come to a conclusion.
1. You can have more control over your retirement funds
If you sign up for a traditional retirement account, you’ll need to contact your custodian or brokerage firm each time you want to transfer money for investment purposes. With a self-directed IRA, on the other hand, the checkbook model allows you to make transactions whenever you want. You can save time by simply writing the check and signing it, and you don’t have to worry about your custodian being available on certain days of the week.
2. You can withdraw money from your Self-Directed IRA
It is a common perception that it is illegal to withdraw money from retirement accounts because the purpose of such an arrangement is to save for retirement. You can cash out 1/2 of your account whenever you want, paying a small penalty for your action. After all, there is no such thing as a free lunch.
3. You can invest in things other than stocks, bonds, and mutual funds
Know of a certain piece of land that you expect to triple in price in a few months? You can invest in it tax-free by opening a self-directed IRA. You cannot do this using any other type of retirement account. The only condition is that the cash comes from the account and the winnings are transferred to that same account. You will be able to freely use that money once you reach the age of 59 and a half.
4. The Self-Directed IRA Is Less Popular Than Other Retirement Plans Due To Lack Of Media Coverage
The reason people haven’t heard of the self-directed IRA is that the mainstream media doesn’t cover it properly. There is so much to be gained for investors with this type of account that custodians feel it is best not to advertise this account. If you know of a certain company that offers to set up self-directed IRAs, you should contact them to get your own.
5. It’s free to roll over your funds from other retirement accounts
Although you have to pay some money to get your self-directed IRA up and running, you won’t incur a fee if you want to roll over money from your traditional or Roth IRA to your new self-directed IRA.