You always hear about Self Directed IRAs and its flexibility regarding various investment opportunities. We will now talk about some of the options we can choose in terms of investments. One of the simplest and in fact safest ways to go is buying a franchise from your Self Directed IRA. Now you may be wondering why buy a franchise and not just go with the traditional option of purchasing stocks and bonds with your IRA funds. Let us discuss some of the advantages of a franchise.
Your IRA funds earn compounding interest over the years but would it not be better and more practical to use that money now. Instead of having your account grow with interest why not use the fund by buying a franchise from your self directed IRA and earn profit from your business venture. First of all it does not have to be a huge expensive fast food brand or a car dealership. There are a variety of small business franchises out there that offers indispensible services that are sure to have a steady customer base. This means the business will get a stable and regular income. Sure stocks and bonds may pay off but there can never be a 100% surety on that. Why not use your own money to finance a small venture that you can run hands on. Would this not offer more stability and security plus an added peace of mind knowing you control where your money is headed.
You may not be able to afford the purchase of franchises form big name brands but there isn't a shortage of low to middle cost options out there. When you go to the mall you can probably notice the abundance of food kiosks. They are usually sold as franchises and everything from supplies to training staff are handled by the mother companies. They are small, easy to manage and generate a steady stream of income. Start up capital for these types of ventures are low, quite affordable and very well within range of your IRA. If it works out why not go and buy more. You can also buy other brands of the same type of franchise since you already know how it works and that it does work. One of the trends going around these days is green ventures. With people's preoccupation with earth friendly technology and techniques, and individuals changing their diets to healthier "greener" programs nowadays, it doesn't take a Harvard business graduate to figure out that "green" sells. There are a number of these so called green companies out there and some of them, even the ones offering franchises at reasonably low prices, are in the fortune 500 listing. So go and check out some of the franchises out there available to you.
Finding a business you can invest in is good and all but there's still the problem of financing. Not to worry. There are a variety of financing options that can help you out with the start up. A lot of brands out there will actually help you out with the financial planning. It is not hard to find low cost but high yielding venture out there that would not make buying a franchise from your self directed IRA a risky move. On the contrary, with proper research and preparation, it makes for a very intelligent move when it comes to properly investing in your future