A Checkbook IRA is more than just another way of retirement investing. It’s a different structure. Within a Checkbook IRA, you hold an LLC—the checkbook of which becomes the checkbook of the IRA itself, giving you the ability to write checks for retirement assets almost at will. And while there are rules about what qualifies for retirement investment and what doesn’t, the benefits of this style of investing are almost too numerous to count. However, we can list a few. Let’s explore why so many investors like Checkbook IRA investing:
Unmatched Speed and Convenience
One of the biggest draws of Checkbook IRA investing is the speed and flexibility it provides. When you have control of the LLC’s checkbook, you can act quickly on investment opportunities without waiting for custodian approvals. You simply write the check and the transaction can go through quickly—assuming it’s a valid retirement transaction, of course.
Imagine finding a lucrative real estate deal at a foreclosure auction. With a Checkbook IRA, you can write a check immediately and secure the property, whereas a traditional Self-Directed IRA might involve delays due to custodian processes. This ability to act on time-sensitive opportunities makes Checkbook IRAs a real boon for investors who love to take the bull by the horns.
Cost Savings on Custodian Fees
Traditional Self-Directed IRAs often require a custodian to oversee each investment. This can mean additional fees for transactions, wire transfers, or account maintenance. With a Checkbook IRA? These fees are often minimized because you control the investment process directly through the LLC.
By cutting back on custodian involvement, you can save on administrative costs. You can also allocate more of your retirement funds toward actual investments, helping make the most of your portfolio. Rather than believing that these arrangements are for wealthy investors alone, you can use them to squeeze more value out of a smaller retirement nest egg as well.
Expanded Investment Options
A Checkbook IRA doesn’t just allow you to invest faster. It opens up the opportunity to place all sorts of alternative investments. Beyond the typical options like stocks, bonds, and mutual funds, you can pursue:
- Real estate (rental properties, land, or commercial buildings)
- Tax liens and tax deeds
- Precious metals
- Private lending opportunities
- Startups or private equity
- Cryptocurrency
This expanded access to alternative assets allows you to diversify your portfolio in ways that aren’t always possible with traditional retirement accounts.
More Direct Control Over Investments
For hands-on investors, a Checkbook IRA is the ultimate tool for controlling your retirement destiny. With the ability to write checks directly from the LLC, you eliminate many layers of complexity and streamline the investment process.
Want to make improvements to a rental property held in your IRA? Need to pay property taxes or contractors? With a Checkbook IRA, you can do so directly, ensuring that your investments stay on track and fully under your control.
Are There Drawbacks to Consider?
While the benefits of Checkbook IRAs are plenty, they do require careful management. That’s especially important if you want to avoid prohibited transactions. The IRS has strict rules about using retirement funds for personal benefit. And any violations could lead to severe tax penalties. Additionally, setting up the LLC and ensuring compliance can require some initial legwork and expertise, which is why it’s always good to reach out for some help.
However, for investors who value control, speed, and expanded options, these hurdles are often worth it. We believe that partnering with TurnKey IRA can help you take more control over your retirement—just make sure to reach out to us at TurnKey IRA by dialing our number: 844-8876-IRA (472).
Contact TurnKey IRA at 844-8876-IRA (472) for a free consultation. Download our free guide or visit us online at www.turnkeyira.com.
