During his presidential run, Mitt Romney came under scrutiny when it came to light that he had acquired something of a fortune in his self-directed IRA. According to Forbes.com, Romney’s IRA was worth between $20.7 and $101.6 million. How did he acquire such wealth in a qualified plan environment?
The answer lies in the descriptor “self-directed.” Because Romney this had a self-directed IRA (aka SDIRA), he was able to use his IRA to fund venture capital and private equity investments inside his retirement account. When Bain Capital (in which Romney was a founding partner) became highly successful, Romney’s wealth ballooned.
While few people have the ability to turn limited retirement plan contributions into many millions, the financial container Romney used to grow his investments tax-deferred is not reserved for multi-millionaires. Any American can open a self-directed IRA and use it to invest in (almost) anything they wish.
In this article, we outline self-directed IRA pros and cons and the basics of self-directed IRAs, including:
What is a self-directed IRA?
What can you invest in within a self-directed IRA?
What are self-directed IRA pros and cons, advantages and disadvantages?
Who might benefit from one?
What is the process and how do you begin it?
Then at the end of this article, we’ll list links to additional resources for further information.
Kim and Spencer dive into the definition of capitalism: how it works, is created, and provides in today’s world, its future, and how we can embrace it.
Best-selling author Kim Butler and Spencer Shaw show you how to take more control of your finances. Tune in to The Prosperity Podcast to learn more about Prosperity Economics thinking and strategies today!
Do you have a question you would like answered on the show? Please send it to us at email@example.com and we may answer it in an upcoming episode.
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What’s a favorite book that you’ve read recently? Kim and Spencer dive into some financial and entrepreneur book lists that you can use!
Best-selling author Kim Butler and Spencer Shaw show you how to take more control of your finances. Tune in to The Prosperity Podcast to learn more about Prosperity Economics thinking and strategies today! Do you have a question you would like answered on the show? Please send it to us at firstname.lastname@example.org and we may answer it in an upcoming episode.
“Gratitude for the present moment and the fullness of life now is the true prosperity.”
– Eckhart Tolle
2020 has been an unbelievable year—one with unusual challenges! In addition to the health and economic crisis, the media floods us with information to keep us stressed and outraged. Ironically, that state of mind only endangers our health and wealth!
Now more than ever, it is imperative that you control and direct your mindset. We have limited control over external circumstances, but we have complete control how we respond to challenges!
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