How a Checkbook IRA Helps You Invest in What You Understand
Stocks and bonds. In a typical IRA, that’s what your investments will be limited to—basic funds that don’t give you the freedom of working with what you might be good at. But when you use a Checkbook IRA, you can use the advantages of a Self-Directed IRA to pick from a much wider assortment of possibilities. How does it all work? And why is it called a Checkbook IRA? Here’s what you’ll need to know.
The Power of Checkbook Control
A Checkbook IRA is a Self-Directed IRA with a special advantage: direct control over your funds. Instead of relying on a custodian to approve every move, you set up an LLC owned by your IRA. Once that’s in place, you can write checks or send payments straight from the LLC’s bank account, letting you act on investment opportunities without waiting for approval. This setup cuts down on transaction delays and fees that usually come with custodian-managed accounts.
This level of control means you’re not limited to stocks and bonds, as we mentioned. You can invest in real estate, tax liens, private businesses, precious metals, or more—assets you might understand better than the typical Wall Street portfolios. If you have expertise in a particular area, a Checkbook IRA gives you the flexibility to use that knowledge to your advantage. You’re put in charge of your retirement account with plenty of freedom to choose your investments as you see fit. (Just make sure you know what you’re doing.)
Investing Without Unnecessary Fees
With a traditional Self-Directed IRA, every transaction has to go through a custodian. This often means extra fees and time-consuming paperwork—or, at the very least, an extra step you might prefer to skip. If you want to purchase a property, for example, you’d have to get the custodian’s approval, wait for them to execute the transaction, and potentially pay asset-based fees along the way. A Checkbook IRA eliminates most of those hurdles.
Once you’ve established your LLC, you can act quickly. Want to buy an investment property at auction? Just like that, you can write a check on the spot. Need to purchase another property before the price shifts? You don’t have to wait on a custodian’s green light. You can work on your terms as long as you stick to the rules of retirement investing. This direct access lets you take advantage of market opportunities as they arise, all while keeping more of your money in your investments instead of paying it toward transaction fees.
Is a Checkbook IRA Right for You?
A Checkbook IRA works best for investors who want more freedom in choosing and managing their assets. If you’re comfortable making your own investment decisions and prefer alternatives to the stock market, it could be a game-changer for your retirement savings. But it also comes with responsibilities. You have to follow IRS rules carefully, making sure you don’t engage in prohibited transactions, like using IRA funds for personal expenses.
That’s why working with a knowledgeable provider is key. Setting up a Checkbook IRA properly from the start ensures you stay compliant while taking full advantage of its benefits. If you want more control, lower fees, and the ability to invest in what you know best, a Checkbook IRA could be the ideal tool to grow your retirement savings.
Of course, none of that happens without getting started on the path in the right way. That’s where we at TurnKey can help. Reach out to us at 844-8876-IRA (472) to find out more about what we do.
Imagine a life where your retirement investments feel as easy to make as any other investment. Sure, rules are separating the two, but once you have a Checkbook IRA in place, you’d be surprised how natural it can feel to make retirement investments. Interested in learning more? Contact TurnKey IRA at 844-8876-IRA (472) for a free consultation. Download our free guide or visit us online at www.turnkeyira.com.
