Self-directed IRAs too Good to be True? Is this dead on or dead wrong? Jim Hitt, CEO of American IRA-national self-directed IRA provider responds to the USA Today article “Investing: Are self-directed IRAs too good to be true?” Jim Hitt says, “You Decide,” isn’t that what America is all about?
The article says “Just because you can do something doesn’t mean that you should. You may be capable of cross-breeding trout with electric eels, for example but you probably shouldn’t”. Cross-breeding trout with electric eels might not be a good idea but cross-breeding donkey’s with horses resulted in a new breed…mules. Mules are sure-footed, hardy, and calmer than horses and less stubborn and smarter than donkeys. Benjamin Franklin experimented with a kite and lighting and this experiment began our understanding of electricity. There are many examples in history of ‘experiments’ that resulted in the modernizations and life improvements that everyone now enjoys.
Jim Hitt interjects, “Just because you can doesn’t mean you should but if you never try then you will never know what great things can happen. I have been an investor for more than 30 years and I can tell you that those who try the hardest, those that do their due diligence and make intelligent investment choices are the ones that experience the greatest success.”
David G. is a client of American IRA who grew a Roth IRA from $6,800 to $293,000 in five short years. This success was achieved by David’s continuous prospecting and tireless advertising along with some very carefully done due diligence. With great work came great success in David’s case.
As the USA Today article says “You can put many types of investments in self-directed IRAs.” There are very few restrictions on the types of investments allowed in a self-directed IRA. A self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more!
The article also goes on to warn about the possibility of scams involving self-directed IRA investments. Jim Hitt comments “Risk is not isolated to self-directed IRA investments. Even the professionals missed the $50 billion Bernie Madoff scam and the $7 billion Allen Stanford scam. I would much rather do my own ‘due diligence’. Whether you are investing inside an IRA or outside an IRA, the risk of scams and bad investments is the same. The only thing that changes is where you are pulling your funds from for the investment. Investing, regardless of whether it is inside an IRA or not, requires careful due diligence and consulting with professionals to ensure that your hard earned money is protected. As for the fact that the article calls out there are tax advantages and disadvantages…that is entirely true and that is exactly why you should consult with a tax professional to see if investing with a self-directed IRA fits the investment you have in mind. In most cases you will find that investing inside an IRA is a much more beneficial choice.”
American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more!
As a self-directed IRA administrator they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms ). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term “they” refers to American IRA, located in Asheville, NC.