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The ―Truly‖ self directed IRA, 401K or Other Qualified plan allows you to:
1. Truly diversify your investment portfolio with investments you really know and understand,
2. Make any investment tax-free or tax deferred, and 3. Be in control of your financial future
Diversify your portfolio is the number one rule of all financial advisors. It adds a whole new meaning to diversification when you can add investments you know, understand, and work with everyday to your portfolio..
A ―truly‖ self directed account allows a realtor to invest in real estate, a farmer to invest in livestock, a doctor to invest in medical equipment, a mortgage broker to invest in loans, a car salesman to invest in cars, a librarian to invest in books, a software programmer to invest in software royalties, a business person in a company—on and on and on—you get the point.
These individuals know risks the rewards they can get from these investments and it is almost second nature to them. Their investment becomes less stressful, more rewarding, and easily understood. The self-directed account facilitates diversification while utilizing your expertise and knowledge.
A ―truly‖ self-directed IRA, 401K, or other qualified plan allows you to make any investment tax-free or tax deferred that otherwise may be taxable. Tax free/tax deferred investments grow much quicker (exponentially) than taxed accounts considering the same rate of return on an investment.
Of course, the growth rate is dependent on each individual’s tax rate and the investment return rate. Very few Americans know that they can make a self directed IRA investment in real estate or other alternative assets.
Most IRA custodians allow you to self direct in anything “they sell”, which restricts your options for self directed IRA investing to standard assets such as stocks, bonds, mutual funds, commodities, futures and CDs. It is important to understand the effect of taxes on your money. See the example below:
Assumptions: A 14 year old child contributes $11.00 per day or $ 330.00 per month or $ 3960.00 per year to an account for only four years, with no further contributions. A 10% rate of return and a 30% tax bracket is assumed for the taxable account.
Compare the difference at 65 years old. Continued on Page 8--->>>>
Copyright MMXI Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (502) 276-1810 www.KREIA.com
DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.
Saturday Workshop with Carl Fischer – Feb 25th 8:30-4:00pm Register Now! www.KREIA.com
Members $49 / 2 for $79
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