A Checkbook IRA is a type of self-directed retirement account that allows the account holder to write checks directly from their IRA account. The checks can be used to make investments or pay fees related to your existing investments. This is an ideal option for investors who want quick access to their funds to take advantage of new investing opportunities as they arise. There are many benefits that make this type of IRA more desirable, which is why more people are using them.
Maintain Tighter Control
Your ability to write checks from your IRA account gives you better control over your retirement wealth. You can also deposit income you earn from your investments directly into the account. The increased control will help you grow your wealth more steadily by allowing you to make time-sensitive decisions quickly.
Easier Investment Management
Since you can pay bills related to your investment with your check-writing abilities, you’ll find it easier to manage your assets. You won’t have to go through a lengthy withdrawal process or transfer of funds to manage your assets. You can just write a check to cover any fees or bills that are related to your investments.
Since a Checkbook IRA requires establishing a single-member limited liability company (LLC), you’ll have that added protection. This means your personal finances will be protected against loss. Under this situation, your investment assets will also be better protected. You can learn more about these protections by talking with a retirement investment advisor who is familiar with self-directed IRA accounts.
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