Private Lending IRA Benefits

When was the last time you looked at your retirement savings account and said “wow! I’m going to have a great retirement!” Probably never. Why? Because your account balance is most likely growing very slowly thanks to the lackluster performance of the stock markets and other financial markets over the past decade. Wouldn’t it be nice if there was another way to invest your money and grow it more quickly? Other than riskier stocks? What if there was? Would you invest your money differently?

The good news is that there are many other ways to invest your money in order to create a more financially secure retirement. You still get the same benefits that your current IRA or 401k offers but you can take advantage of alternative ways to use your savings to generate better growth. One of these options is a private lending IRA.

What is a private lending IRA?

A private lending IRA is just like a regular IRA in that you make regular contributions to it. The custodian of the IRA manages the account and you get tax benefits on the money, either when you deposit or when you withdraw, based on the type of IRA you have. But, here’s where things get interesting. In a private lending IRA scenario, instead of investing in stocks, bonds and other traditional investment vehicles, you loan your money to others, while charging interest, just like a bank would. The repayment plus interest goes back into your IRA, where it then becomes available for you to lend to someone else, thus allowing you to not only receive interest payments on the same money again, but on the interest that you just received! As you can see, this model is very lucrative, which is why banks and lenders have been using this model for a long time.

What’s more is that you get to choose the recipient of the loans you make. Of course borrowers have to meet certain criteria to be eligible for a private lending IRA loan, you ultimately have the final say on who you lend money to and who you do not, just like a bank!

Not all IRA custodians can provide you the opportunity to take advantage of this incredible retirement savings opportunity. But, we can. We can help you set up your account as well as make sure that the loans you make conform to all of the rules and regulations that apply to this kind of account. You never have to worry about being alone.

If you are interested in learning more about private lending IRA benefits or to find out how you can open your own account, give us a call. Our friendly, knowledgeable staff have the answers you need to decide whether or not a private lending IRA is the right choice for your retirement savings needs. You have options when it comes to securing your future. Why not explore them all? Call or click today to explore the benefits of a private lending IRA.