American IRA looks to Bust the Myths Surrounding Tax Lien Investing with Self-Directed IRAs

What are the myths about tax lien investing with Self-Directed IRAs, and what are the realities? American IRA’s recent post seeks to highlight the differences.

ASHEVILLE, NC, UNITED STATES, November 4, 2023 /EINPresswire.com/ -- While many investors may know that real estate is a valid retirement investment, a lesser-known asset class is that of the tax lien. A recent post at American IRA sought to highlight tax lien investing, pointing out that because tax liens are generally less-popular than many other types of retirement investing, there are a lot of myths surrounding these assets. But as American IRA noted, this fact doesn’t mean tax liens have to be any less effective an asset for those retirement investors who are curious about learning more.

In the recent post, American IRA highlighted the “essential” facts of tax liens. It summarized the basic strategy: investors can buy the tax liens that local governments place on properties with unpaid taxes. When these local governments auction off the liens, the investor takes over the debt, which means the unpaid taxes become a debt now owed to the investor—or, in this case, the investor’s IRA.

One of the most persistent myths surrounding tax lien investing, for example, is that it's inherently risky. American IRA debunked this myth by emphasizing that like any investment, there are risks involved, but they can be managed effectively with proper research and due diligence. Self-Directed IRAs provide investors with the control and flexibility to choose tax liens to align with their risk tolerance and investment goals. With careful selection and a well-thought-out strategy, the post notes, tax lien investing can offer the stable returns an investor might be looking for.

Another common misconception is that Self-Directed IRAs cannot invest in tax liens. American IRA clarified that this is not the case, as the IRS allows a wide range of investments within Self-Directed IRAs, which would include tax liens. However, to ensure compliance with IRS regulations and avoid prohibited transactions, the post recommends pairing with a Self-Directed IRA custodian.

To learn more about Self-Directed IRAs for tax lien investing, interested parties can seek out the post at www.AmericanIRA.com, where American IRA regularly updates its blog with information about retirement investing, Self-Directed IRA investing, and more. Additionally, call American IRA directly by dialing 866-7500-IRA.

Rebekah Schram
American IRA, LLC
+1 828-257-4949
email us here
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