How To Buy A Business With Your IRA - Self Directed IRA

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by Daniel Cordoba

The new paradigm, where IRAs are treated as investment businesses rather than as hedges against risk, is partially a product of the self-directed IRA. Rather than housing their IRAs with traditional custodians and accepting their restrictions, investors are able to make their own investment decisions and realize far greater returns. With the use of the Limited Liability Company, IRA holders gain absolute control over their IRAs.

The attitudes concerning IRA investments have shifted over the past several years, however, as investors have started looking for ways to build real wealth within their IRAs. It is still a good idea to keep your IRA’s tax-advantaged assets from high-risk ventures, but restricting your IRA’s investment activities to mutual funds is no longer considered to be the best strategy. Avoiding all risk leads to minimal returns.

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