The Self-Directed IRA
by L. Jake Carpenter, VP of Investor Relations
If you have a retirement plan through a former employer, such as a 401(k), 403(b), or any kind of company-provided retirement plan, you may want to consider moving these types of accounts into your own personal IRA plan, called a “Self-Directed IRA”. This generally offers more investment options as well as access to additional benefits that would not be available with your employer’s retirement plan.
The primary benefit that you can enjoy with a Self-Directed IRA is the ability to access a better variety of funds, including alternative assets on an institutional platform. With a Self-Directed IRA, you can diversify your retirement account outside of the stock, bond, and mutual fund markets, by repositioning some of your retirement account money into a much more stable position in an asset such as income-producing real estate.
Though the name “Self-Directed IRA” may imply that this is something that you do yourself. That is not the case. The transaction is made with the help of a trustee. And because the transfer into a Self-Directed IRA is from trustee to trustee, it is tax-free. It is important to work with a professional who can help you determine which investment opportunities are the most appropriate for you.
Maybe you have an IRA account that isn’t part of a company-sponsored plan. You may want to consider if the benefits of having a Self-Directed IRA are right for you. With a Self-Direct IRA, you can diversify, without tax consequences, into income-producing real estate. This can be a powerful way to reduce your exposure to market volatility and increase the diversification of your investment money.
One of the ways we help people access local income-producing real estate through their Self-Directed IRA is to diversify into one of our private equity Real Estate Investment funds. Qualified investors can invest in one of our funds for as little as $40,000 per share and participate in the tax-advantaged income. No individual can own more than 50% of the total shares of the fund. The names of the shareholders go on the title to the property.
Equilus Capital Partners, LLC, is a real estate management company. We are responsible for the maintenance and operation of the properties in our investment funds. Shareholders may receive a distribution of quarterly fund earnings and may also participate in the capital appreciation and depreciation of the real estate in the fund. The real estate investment funds thus offer investors a wonderful, hands-off way to enjoy the benefits of real estate as an asset class without the headaches of trash, toilets, and liability.
If you have an old retirement account from a previous employer, or you’re just not happy with the performance of your Individual Retirement Account, contact one of our experienced professionals at Equilus Capital Partners and find out if a Self-Directed IRA is right for you. (509) 665-8349