A growing number of people who wish to take full control over their retirement investments and who wish to have the most amount of flexibility possible are turning to a checkbook IRA for the solution. A checkbook IRA is one that allows you to write checks for investments and also allows you to invest in vehicles such as real estate and gold.

However, checkbook IRAs are also shrouded in a bit of mystery due in part to misinformation campaigns meant to confuse people. Because of that, there are many myths that go along with them. However, by separating fact from fiction you can better determine if a checkbook IRA is right for your situation.

Myth 1: Checkbook IRAs Are the Same as Standard and ROTH IRAs

Perhaps the most common myth tossed about in regards to a checkbook IRA is that they are one and the same with standard and ROTH IRAs. This could not be further from the truth. A checkbook IRA a type of IRA that allows you to write checks for approved investments without having to request permission from the custodian. In addition, a checkbook IRA allows you to invest in real estate, physical gold, silver and a variety of other tangible assets that you can’t invest in with a standard or ROTH IRA. Note: A standard or Roth IRA can be converted to a checkbook IRA. Call us today to learn more.

Myth 2: Standard and ROTH IRAs Are Safer than a Checkbook IRA

The notion that a standard or ROTH IRA is somehow safer that a checkbook IRA is not one that makes sense. IRAs as a whole are not investments, but rather tax shelters that allow you to invest your money as you plan for your retirement. In fact, no matter what type of IRA you have the safety of the money you have invested will depend solely on what you are invested in. Therefore, this is an investment risk factor and not an IRA type factor.

Myth 3: Standard and ROTH IRAs Allow Investors to Buy Gold and Real Estate

You might hear that you don’t need to have a checkbook IRA in order to buy gold and real estate as a standard or ROTH IRA will let you buy either investment. This is also a myth that is easily debunked. While you can buy real estate investment trusts (REITs) and gold stocks, your IRA can’t own physical property or physical precious metals with a standard or ROTH IRA. A checkbook IRA; however, offers you the flexibility within your IRA to buy physical assets such as these.

Stay Informed

You might hear a lot about IRAs including checkbook IRAs. However, learning what is true and what is simply hearsay myths can help you ensure you are investing in your retirement exactly how you want to be and how you should be.

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