The Do-It-Yourself IRA

Because of recent market fluctuations and corporate and banking scandals, many people are looking at ways to better control their retirement funds.  One of the most popular choices has become the self-directed IRA.  These plans allow investors to look at assets beyond stocks, bonds and mutual funds.  This is a relatively new concept and they may not be right for everyone.

Using a self-directed IRA to invest in alternative investmentsIt’s important to point out that this type of plan is not any different than traditional or Roth IRA plans.  All plans follow the same guidelines that the IRS sets out.  The only difference is what type of investments you can sink your money into.  If your IRA is held with a custodian at a financial institute, you may only be able to invest in the standard options.  However, when you act as your own custodian, there are many alternative investments you can choose such as real estate, rental properties and small businesses.

Utilizing a self-directed IRA allows you the power of tax-advantaged savings combined with alternative assets to help truly diversify your portfolio and create greater returns.  While these investments are considered “non-traditional”, they are taken advantage of every day by savvy investors.

Those knowledgeable enough in a particular career can use their insight to invest confidently in his/her particular expertise.  If you’re in real estate but know nothing about the stock market, why limit yourself to stocks and mutual funds when you can delve into the world of properties to help build your retirement fund?

Because of the broad range of investment opportunities, self-directed IRAs can become the target of fraud.  Do your homework and only invest with reputable people.  This is a great vehicle if you are looking to broaden your retirement investing options.  If you want more info or are looking to open your own self-directed IRA, contact the IRA experts at the IRA Financial Group at 800.472.0646!

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