Why bother with a Self Directed ROTH?

[Jesse Turner]

I'm trying to wrap my mind around this option. Here is the scenario: I have a Roth (and it's an absolute DOG by the way) and I want to move it into REI. I've been reading other post asking about moving 401k funds to self-directed IRAs and moving roths to s-d roths. All that makes sense. But here is what I'm wondering- Compared to not having roth, what is the benefit of a roth IF I want to take income every year? My understanding is, I would be taxed on the (withdrawn) earnings whether in a roth or out of a roth just the same. And I'm familiar with 1035 exchanges so that could be used in a similar fashion/objective of delaying earnings. Thanks in advance BP experts (and experienced).

[Brian Eastman]

@Jesse Turner

I Roth IRA is not "today money", but can be a terrific wealth building tool.

Because all growth in a Roth IRA is tax free, you can use such a tax-sheltered vehicle to create a whole lot of tomorrow money for your retirement.

If you do not have a Roth IRA, there can be some reasons to stick with keeping your investment capital in non-qualified funds so you can generate today income. If you already have a Roth IRA, and have success in a particular asset class such as real estate, then moving the Roth to a self-directed Roth IRA capable of being invested in real estate can make a lot of sense. You can turn that DOG account into a real performer.