Using Self-Directed IRAs to Accumulate Tax-Free Wealth

by | Dec 19, 2023 | Fidelity IRA | 5 comments

Using Self-Directed IRAs to Accumulate Tax-Free Wealth




Pace Morby and Matt Sorenson break down retirement accounts which can be utilized to invest and grow money tax-free, allowing your investments to compound. Investing retirement accounts in a multitude of ways outside of traditional brokerages can offer greater flexibility in your portfolio.

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Chapters:
0:00 – Intro
2:07 – Money in U.S. retirement accounts
3:17 – Getting money to fund deals
8:37 – What is a self-directed IRA?
11:12 – From IRA to LLC account
18:29 – This is NOT infinite banking
20:20 – Transferring money

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❎ I am not a CPA, attorney, insurance, contractor, lender, or financial advisor. The content in these videos shall not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a YouTube video for entertainment purposes ONLY ❎…(read more)


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Untaxed Wealth With Self-Directed IRAs

Self-directed Individual Retirement Accounts (IRAs) have gained popularity among investors looking to diversify their retirement portfolio and potentially build untaxed wealth. Unlike traditional IRAs, self-directed IRAs provide investors with the flexibility to invest in a wide range of assets, including real estate, private equity, precious metals, and cryptocurrency, among others. This flexibility allows investors to potentially grow their retirement savings with untaxed gains.

One of the key advantages of self-directed IRAs is the ability to invest in alternative assets that are not typically offered by traditional IRAs or 401(k) plans. By diversifying their retirement portfolio with these alternative assets, investors can potentially benefit from untaxed wealth as these assets appreciate over time. For example, investing in real estate through a self-directed IRA can allow investors to build untaxed wealth through rental income, property appreciation, and potential tax benefits.

Furthermore, self-directed IRAs offer investors the opportunity to capitalize on investment opportunities that may not be available through traditional retirement accounts. For instance, investing in private equity or venture capital funds can potentially result in untaxed wealth through capital appreciation and dividends. Additionally, investing in precious metals or cryptocurrency can provide investors with a hedge against inflation and potential untaxed gains as the value of these assets appreciates.

It is important to note that while self-directed IRAs offer the potential for untaxed wealth, investors must adhere to IRS regulations and guidelines regarding permissible investments. Prohibited transactions, such as using a self-directed IRA to purchase a property for personal use, can result in severe tax consequences, including disqualification of the IRA and potential penalties.

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Investors considering self-directed IRAs should also be aware of the potential risks associated with alternative investments. Unlike traditional asset classes such as stocks and bonds, alternative assets can be more volatile and illiquid, and may require a higher level of due diligence and expertise to manage effectively.

In conclusion, self-directed IRAs offer investors the opportunity to build untaxed wealth by diversifying their retirement portfolio with a wide range of alternative assets. By taking advantage of the flexibility and potential growth opportunities provided by self-directed IRAs, investors can potentially benefit from untaxed gains as their alternative investments appreciate over time. However, it is important for investors to carefully consider the potential risks and adhere to IRS regulations when utilizing self-directed IRAs to build untaxed wealth.

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5 Comments

  1. @SarahJush

    Good investment ideas will hold their value or increase in value for long time. This will allow you to exit at a good price. Short time investment's should have a high level of proper guide. Thanks to Caitlin Jeffrey the lady you recommended

  2. @KilleenRealtor

    I will be opening up my ira account. Had a tsp prior

  3. @RJ4Loans

    As always, great information Pace and Matt. More Real Estate Professionals need to know this information to help them become and find money for them to be able to do deals. Thanks for all you do.

  4. @OreckGarcia

    It’s called an index life insurance policy

  5. @ampthegamergod2223

    I have 19k in my ira. Imma do this! Thank you.

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