If you have taxes due for the September or October 15th deadline, you may want to work with your tax advisor to find ways to pay towards your retirement account rather than the IRS. The goal with retirement investing is to shift money that would otherwise go to the IRS into your retirement account. This is completely legal and specifically allowed by the IRS. In fact, the IRS wants you to do it.
Did you know that most people can put way more than the $5,500 or $6,000 into a retirement account? In fact, you may be able to put over $100,000 per year into a retirement account and take a $100,000 tax deduction for it.
Curious? Keep reading.
What to Buy With Your Retirement Money
Once your money is in a retirement account, you need to put it to work. Investing in what you know best via self-directed accounts is one way to accumulate massive amounts of wealth in a relatively short period of time. You can have total control over your retirement and invest in alternative assets outside of the choices provided by your financial advisor.
Self-Directed investing is not a brand new strategy. In fact, it has been around for over 30 years. But you need to know the rules before you begin! There are things you can do, and things you can’t. Here’s a quick run-down of the do’s and don’ts of self-directed retirement investing:
Self-Directed IRA Investing Quick Tips
1. Make sure you have a truly self-directed retirement fund with an independent trustee or custodian. Many plans may sound self-directed–as long as you only choose from the custodian’s list of pre-approved investments. Use one that really allows you to invest in what you want.
2. If you’re using a Roth IRA, make sure you keep it going for at least 5 years! …read more