Finance Roll

Each person is different and so is each person's investing style. If you are planning to have a self directed IRA, you should be aware of some of the solutions that are available to you. As of 2005, less than half of eligible households had or were maintaining an IRA. If this number comes as no surprise to you, it should, given the number of baby boomers who are approaching retirement age each year.

Some statistics suggest that if you cannot maintain at least 70% of the income you generate before retirement, your retirement will begin with a strain and possibly find you returning to work just to make ends meet.

The best time to start considering a self directed IRA is now, not just before you're getting ready to retire. There are many solutions available, some of which are very simple and easy to get started when it comes to your IRA. Sometimes the first step may be the hardest. This can be true for you in terms of getting a self directed IRA started. U.S. banks have approximately three million dollars in IRAs that are controlled by financial investment institutions and banks.

When you have an IRA controlled by a bank or other institution, chances are you may be comfortable with how your money is being handled. The thing is, however, with a self-directed IRA you take control of your finances and you eliminate the amount of money that you are giving away to others. Not only does it make perfect sense to keep as much money in your IRA as possible, it can keep your money in your IRA where it belongs.

If you've been thinking about investing in your IRA, there are some things you should know about having a truly self directed IRA. For starters, contrary to what you may have heard, there are certain investments you can make to your IRA that the government will allow. One such investment is real estate.

Whether you are aware of it or not, real estate is one of the investment opportunities that is said to be 'under the radar'. This is because in many respects are various options when it comes to owning real estate. This means if you are considering making investment additions to your IRA, the following are some real estate options that the government has no problem with you adding.

They include:

· Raw land
· Single family homes
· Mobile homes
· Commercial property
· Apartments
· Tax liens
· Real estate notes
· Mortgages

Now you may be wondering how you get started with real estate since it's such a great way to invest, right? First you need to know about the type of property that you want to invest in. For example, if you want to deal with raw land, you need to know what's associated with owning raw land. One of the simplest ways to get started investing in real estate through the purchase of single family homes. There are many different agencies that offer single family homes for sale.

It is important to understand that there is some risk associated with any investment choice you make for your IRA, even when it is self directed. Real estate is no exception. Some of the most inherent risk with real estate involves dealing with people you chose to make financial arrangements with.

For example, when you decide on rental property for your investment choice, there is an entire proverbial laundry list of expectations that go hand in hand with renting your home or apartment or even commercial property. It is a good idea to have a lawyer review all of the contracts you plan to use. It is also a very good idea to have any potential tenants go through a screening process.

One of the best ways to invest for retirement without directing funds to an IRA is with after tax dollars. When you invest this way you aren't investing hard earned money neither are you taking a huge risk. Self directed IRA's are often seen as risky and many are skeptical to try something new. When you invest some of your retirement into a self directed IRA your setting up for a successful, comfortable and promising future. In many cases the government often suggests retirement investing.

Although you may have a lot of questions in your mind...Like is this right for me? Will this cost a lot... there are a lot of frequently asked questions. Even though self directed IRA's are an advertised thing in main stream... it's still a very successful way to make a living while being retired. Many find that this is an easy way to make their retirement go smoothly and not worry about their finances or even where money comes from.

With all investing there will be pros and cons. Of course with everything investing has its risk too. Although we know that the government won't allow you to invest in everything there are a lot of things that you can invest in such as self directed IRA's more and more we see people involved in it...So why can't it be you.

When you are ready to start exploring your options for a self directed IRA, there are plenty of ways to diversify your IRA portfolio. Take on an entrepreneurial attitude towards investing and don't be afraid to take a change. Remember, your retirement is supposed to be the time of your life where your money works to take care of you, not the other way around. Real estate and other non-traditional investments can open up an entirely new world of opportunities to diversify and increase your self directed IRA holdings beyond belief.