A self directed IRA or 401k is not that much different from a traditional IRA or 401k in terms of growing your retirement savings other than a self directed IRA allows you to invest in a wider variety of instruments such as real estate. With a self directed IRA, you are also able to invest in real estate tax free.
Self Directed IRA Real Estate Rules
Once you've converted your IRA or 401k to a Self-Directed IRA, there are certain IRA real estate investments the government allows you to invest in... one of those is residential real estate - which includes apartments, single family homes and duplexes. Most people don't realize they can invest in real estate through their retirement plans because financial planners primarily focus on stocks and cd's.
So if you've ever thought about owning IRA real estate investment properties, doing so through your retirement account is perfect, especially if you don't have time to manage or take care of the property. It's not hard to invest in rental properties, however there are a few things you are prohibited from doing. The following are Self-Directed IRA Rules:
For more info on self-directed IRA's click here