A ‘Checkbook’ IRA allows you to immediately access your retirement funds and take action when a really good investment property is available. There are no delays or extra fees usually associated with operating out of a Custodian account. (See our video entitled “Custodian IRA vs Checkbook IRA Control”.)
Advantages of a Checkbook IRA include:
- Immediate action on investment properties – simply write a check!
- No extra hidden fees
- No investment reviews by custodians
- Ongoing, no cost consultations with our Advisors & Tax Attorney
- Asset protection afforded by an LLC (Limited Liability Company)
- Easily partner with others in structured investments
- Simplified escrow transactions
Custodial Costs Eliminated or Reduced
By moving the funds into a Checkbook IRA, custodial costs are reduced to a minimum. Like all other banking and financial institutions, custodians earn fees on every transaction that impacts the account.
Every time a bill is paid, the account is debited. Many self directed IRA custodians also charge a percentage rate on the asset value in the accounts. All these fees can significantly reduce the return on investment.
When setting up a Checkbook IRA, Safeguard Financial utilizes a custodian that charges a very low annual fee and provides excellent customer service.
You Can Diversify your Portfolio and Investments
When the Checkbook IRA structure is in place, and the bank account established, acting on behalf of the IRA, you may invest into anything allowed by law. This includes practically everything except collectibles (like art, jewelry, etc) and life insurance. You’re no longer limited to investing in the stock market.
Here’s a partial list of allowable investments: All Investment Real Estate Types, Trust Deeds & Mortgages, Tax Liens & Certificates, Equipment Leasing, Private Notes & Business Loans, Limited Liability Companies (LLC), Limited Partnerships, Stock of Private Companies, Receivables and Factoring, Public Stocks & Mutual Funds, Treasury & Municipal Bonds, FOREX Trading Accounts, Options & Futures, and much, much more…
