Self-directed IRA accounts, also known as checkbook IRA accounts, provide many options for investors. If you want to maximize your retirement account returns, investing in real estate is one of the best ways to go about it.

For all of the opportunity that the checkbook IRA presents, it can be a confusing, discombobulating journey for many. However, asking and answering a few questions can easily help you determine a sound investment strategy for which to use your self-direct IRA account funds.

Self-Directed IRAs: 3 Real Estate Investment Strategy Questions to Ask

What type of investor am I? Are you a risk taker, very conservative, somewhere in the middle? Before tapping your self-direct IRA funds to invest in real estate, you need to know what your risk compass is. This will guide you in selecting which type of real estate investment you want to make.

Is retirement looming, or in the distance? This question is designed to highlight which options you can safely take advantage of with your self-directed IRA account funds. Like any other type of investment, some real estate options are riskier than others. The closer retirement is, the less time you have to recover from mistakes. So, you may want to consider safer options like buying and holding property (eg, for rental income).

How much do I need to maintain my lifestyle during retirement? Chart out how much you’re going to need if your retirement last 20, 25 and 30 years. Looking at the numbers will tell you exactly what type of real estate investments you should be taking advantage of to maximize your checkbook IRA account investment.

There are quite a few more lessons to add to this list. But answering these three will go a long way towards helping you to formulate an investment strategy for your self-directed IRA account monies.