Invest your Retirement Fund

One of the key goals of working individuals is to have “peace of mind” when they retire.  The thought of knowing that all your years of hard work will allow you to comfortably enjoy your golden years is certainly an exciting and rewarding one.  As a result, there has been an increase in the demand for new and unique information on how your retirement funds can work for you safely and legally.  Thus many options have been examined and re-examined to provide the best information for you.

Moving and investing your 401k or IRA offshore is fairly new, as it wasn’t until recently that many realized that the USA Tax Law actually made allowances for this type of investment.  For many years, available investment options for retirement funds have been limited or so it was made to seem. In the past, many would highly depend on companies that offer retirement plan investment, to invest your retirement funds prudently for gain.  However many times this was done at a minimum or not done at all.  In fact, many of the funds were not invested but were still accruing high fees and commissions to the benefit of the company and not the individual.

Research shows that only about 20% of retirement account holders are familiar with the self directed IRA concept. This simply means that you are allowed to direct the investments of your retirement fund account instead of depending on another company to manage your funds. The good news is that once the self directed IRA is set up, you make all decisions and ultimately take charge of your own retirement fund ensuring that it’s invested prudently for maximized profits. After all, it really doesn’t matter if you are close to retirement or years away from it, planning for a decent future involves a great game plan.

How Self Directed IRA’s work

Creating and maintaining a self directed IRA is an easy and straightforward process. A trustee or custodian will hold all your IRA assets on your behalf.  However, before this can be done an account must be opened with a trust company or a brokerage firm who offers self directed IRA services. Most custodians already have existing relationships with brokerage firms and as such setting up a brokerage account on your behalf is not a tedious process. The accounts are held as an asset within your self directed IRA account.

Once completed the share certificate will read as follows “123 Trust Company”, custodian for “your name”, IRA, Account No.— . This is the distinction and identifier for this product, it allows the brokerage account to be a part of the self directed IRA client account.  After completing this process you are ready to establish a banking relationship with any offshore financial institution, of your choice, to be able to purchase different types of investments.  One of the major advantages is that your assets or profits earned from investments are not taxed.  All Taxes are delayed until after retirement.

Benefits

A Self Directed IRA is created to provide you with numerous amounts of flexibility and control to make your retirement funds work for you. Here are some of its benefits

1. Easy to establish

2. The individual is in full control and is the only decision making body

3. There are more investment options, it gives you the ability to choose from a wide array of investment opportunities

4. Favorable tax benefits

5. Ability to purchase assets outside of the equity market

Over time US citizens have been told that maintaining any sort of activity offshore is illegal and unacceptable.  Thus moving your primary retirement fund to an offshore institution has been very uncommon until more recently.  Those that understand the process and benefits of this move have been increasing their retirement funds in an environment that is both legal and one that requires no changes to your tax benefits.

Source: http://www.atlanticibl.com/blog/invest-your-retirement-fun