All Forum Posts by: Jessica Dix

@Brian Eastman Thank you Brian. This is perspective I had not really considered yet. I suppose I was thinking along the lines of focusing on securing my early retirement first, but not necessarily at the expense of the latter years. To use your example, I would take the $100 I have now, use it to purchase my first investment property, grown my RE portfolio well beyond the initial investment, and use a self directed IRA after I have made some money. I am in the beginning stages of saving up cash for my first deal and my IRA funds would get me started much sooner.

@George Blower thank you for the information. I will do some more research on the Roth IRA rules.

@Si Chen Isn't the point if the self-directed IRA that it is "self" directed and you have control over your funds? Help me understand by expounding on what you mean by "custodian". I haven't read anything saying I wouldn't have any control over my funds. Thank you!

@Dmitriy Fomichenko That was my thinking as well. I like the idea of the self directed IRA, however, utilizing the funds from my Roth to fund my first investment property seems like a more appropriate path for early retirement. What are your thoughts on withdrawing and paying the penalty? The self directed IRA might be something I should consider after I achieve financial independence?

@Brian Eastman This is very helpful. I definitely intend to live well beyond 59, and it sounds like a self directed IRA may be a better option further down the road. Is it a good idea to withdraw from my Roth and take the penalty so that I can use those funds now? I would use it to fund my down payment and repairs and get a higher return on my investment than if it sits. What are your thoughts?

Hello BP community,

Are self directed IRAs a good idea for those working towards early retirement? My goal is to retire/be financially free by age 35 and not being able to access the cash without penalty until 59 1/2 makes this option seem like it wouldn't be feasible since I won't be able to access the funds for many years into retirement. However, I have funds in a Roth IRA that I would like to utilize now.

I am looking for advice and suggestions from seasoned investors or those who have a thorough understanding of IRAs and creative financing.

Thanks!