Self-Directed Retirement Investors Can Use Tax Liens and Deeds for Diversification

Jaime Raskulinecz, CEO of Next Generation Trust Company, has detailed how self-directed investors can leverage tax liens and tax deeds within their retirement accounts for diversification and passive income. In her Forbes Finance Council column, Raskulinecz explains the nuances of these investments, emphasizing their short-term nature and the tax advantages they offer when held in self-directed IRAs or solo 401(k) plans. Tax liens, often overlooked in real estate investment discussions, present a unique opportunity for investors seeking to expand their portfolios beyond traditional assets.

Raskulinecz clarifies the distinctions between tax lien certificates and tax lien deeds, providing insight into how these investments function within the framework of self-directed retirement accounts. She also cautions investors about the importance of adhering to IRS guidelines to avoid prohibited transactions, such as self-dealing. The appeal of tax liens lies in their relatively short investment horizon and the potential for generating income that remains within the tax-advantaged environment of an IRA.

This income can then be reinvested into other alternative assets permitted under self-directed plans, offering a pathway to further wealth accumulation. For those interested in exploring this investment strategy, Raskulinecz's article offers a comprehensive guide, accessible through her Forbes Finance Council profile. Additional resources on self-directed retirement planning can be found at https://www.NextGenerationTrust.com.