People are always looking for the gratification of successfully completing a do-it-yourself (DIY) project. Even if it’s something as simple as painting an old bookshelf to look new, building something on your own often creates a satisfying feeling. If you’re on Pinterest, one of the most popular ideas among users of this inspirational social media platform is do-it-yourself projects. Users pin DIY project ideas ranging from how to modernize your kitchen to designing your own flower arrangements at your wedding.
According to an article in Psychology Today, building something yourself also increases the item’s value. “The act of building something, putting your own blood and sweat into a physical object, seems to imbue it with additional value above and beyond its inherent quality,” said Travis J. Carter, Ph. D., author of the article. In fact, this is rumored to be one of the reasons why IKEA requires customers to assemble their purchased furniture.
So, how does this relate to IRAs and retirement planning? Banks, brokerages, and mutual fund companies are able to open an IRA for you and act as custodian of your retirement funds, helping you invest in the traditional bank, brokerage, and mutual fund products. However, for those who would like to put their own personal stamp on their IRA and customize their investment choices to ones they are most familiar with, there is a do-it-yourself IRA known as a self-directed IRA.
A self-directed IRA opens up a whole range of investment products that can be purchased inside an IRA beyond the stock market. Since many of us have specialized knowledge that could help us make niche investments in a self-directed IRA, this type of IRA becomes very appealing to the DIY investor. The benefits that accrue may be far more than just psychological.
Give our Florida self-directed IRA administrators a call today at 407-367-3472 to learn more about your IRA options including self-directed IRAs and real estate IRAs! As always, we wish you all the best in your investments!
