Next Generation Trust Highlights Benefits of Equipment Leasing in Self-Directed IRAs

Investing in equipment leases through a self-directed IRA is increasingly becoming a popular strategy, as outlined in a recent article by Jaime Raskulinecz, CEO of Next Generation. This trend emerges as banks and large financial institutions exit the equipment leasing sector, providing opportunities for these assets to be included within retirement plans.

The equipment leasing market caters to clients in manufacturing, trucking and logistics, construction, and professional services. Owners of self-directed IRAs have the option to invest in equipment leasing funds or purchase physical equipment to lease directly to businesses. In the latter case, the IRA effectively acts as the equipment broker, managing leases and vetting potential lessees.

Unlike equipment financing, which is a form of debt, equipment leasing operates under agreements that permit the lessee to use the asset without transferring ownership. When an IRA invests in physical assets, the plan owns the equipment, making the account owner responsible for lease terms and vetting lessees. Alternatively, investing in shares of an equipment leasing fund allows the IRA to take an equity position, with the fund managing the leasing process.

Raskulinecz points out that equipment leasing offers consistent passive income through fixed lease payments and provides tax-advantaged cash flow throughout the lease period. This investment strategy also helps diversify retirement portfolios and hedge against stock market volatility.

As with any self-directed investment, thorough due diligence is crucial. Investors should be comfortable making their own decisions and are advised to review detailed information on equipment lease investments, which can be found in the full article at https://shorturl.at/5jZ7x. More information about self-directed retirement plans is available at www.NextGenerationTrust.com.