Why Self Directed IRA May Be Good for You
A self directed IRA account frees you up from the usual limitations of a
traditional IRA account; namely what you can invest in. You see, ordinary
retirement accounts simply invest our funds in stocks, mutual funds, or
bonds. And with the current economic scenario, this can be a very risky, if
not a losing proposition. Remember, it is our own future that is at stake
when setting up our own retirement fund, so you might want to have more
say on how your retirement money is invested.
With a self directed retirement account, you put up your account with a self
directed IRA custodian. But, you remain to be the accountholder who is
entitled to make your own choices as to where and how your funds will be
invested. You can grow your IRA retirement account by investing in real
estate (aka real estate IRA) or other types of businesses.
Now, you may be wondering why you have not heard about a self directed
IRA from your financial advisor. Well, most financial planners would
recommend this type of IRA, but the problem is that the financial institution
where your IRA is set up is more likely to be biased for their own products.
There is nothing wrong with this, except that your investment alternatives
will be very limited. Besides, some people are simply not cut out to invest on
their own.
But, if you have experience in alternative investing or you have an
entrepreneurial spirit within you, then a self directed IRA may be a good
choice for you and the future of your retirement account. With this setup,
you can substantially grow your retirement money without the interference
of a traditional IRA custodian. Imagine the number of additional investment
opportunities that you may be able to invest in if you work with an
independent self directed IRA custodian or trustee. On top of the expanded
investment options, the gains accrued to your IRA account receive similar
perks provided to the traditional IRA.
However, it must be emphasized that not all types of assets can be allowed
as investments for this retirement account. You cannot invest your IRA funds
although they maybe self directed in collectibles, artwork, antiques or
precious metals. If you do, your cash outlay will be considered as an early
distribution of your retirement fund. You will then be slapped with a 10% tax
on the year that you purchased such assets.
When setting up a self directed IRA, it is important to consult with a
professional self directed IRA advisor. If he is worth his salt, then he will
know how to properly set up a self directed IRA and use it to grow your

funds. Looking for self directed IRA services, then check out
www.SunwestTrust.com.