Would you take tax hit or setup SDIRA?

[Julia Vang Hart]

Suppose you are 59 and 1/2 and can withdraw from your IRA without having to pay the 10% penalty and would only have to pay taxes on the amount you withdraw. You want to start buying investment properties but is unsure of the right direction to take. Do you withdraw the money, pay the taxes and invest the money in real estate or do you roll the IRA to a SDIRA, setup an LLC and purchase investment property through the SDIRA controlled LLC? Obviously, there's pros and cons to both scenarios. I'm just wondering if it's worth it to withdraw and pay taxes to get the freedom of doing what you want with the money or setup the SDIRA and be chained to the rules and regulations and fees.

I'd love to hear from all the experts out there on what is the better choice.