• Twitter
  • Facebook
  • Linkedin
  • Youtube
  • CLIENT LOGIN
  • FORMS
  • OPEN A NEW ACCOUNT
Call us today: 1-866-7500-IRA(472)
American IRA
  • ABOUT US
    • OUR TEAM
    • TESTIMONIALS
    • CONTACT US
    • CAREERS
  • SELF-DIRECTED IRA/401K ACCOUNTS
    • SELF-DIRECTED IRA – TRADITIONAL IRA
    • SELF-DIRECTED ROTH IRA
    • SELF-DIRECTED SEP IRA
    • SELF-DIRECTED SOLO 401k
    • SELF-DIRECTED SIMPLE IRA
    • SELF-DIRECTED HSA – HEALTH SAVINGS ACCOUNT
    • SELF-DIRECTED COVERDELL EDUCATION SAVINGS ACCOUNT
  • INVESTING
    • SELF-DIRECTED IRA – REAL ESTATE IRA
    • SELF-DIRECTED IRA FOR PRIVATE LENDING/NOTES
    • SELF-DIRECTED IRA FOR PRECIOUS METALS
    • SELF-DIRECTED IRA FOR PRIVATE COMPANIES
    • SELF-DIRECTED IRA FOR TAX LIENS/DEEDS
    • SELF-DIRECTED IRA FOR SINGLE MEMBER IRA LLC
    • SELF-DIRECTED IRA FOR JOINT VENTURES AND PARTNERSHIPS
    • SELF-DIRECTED IRA FOR BROKERAGE ACCOUNTS
    • SELF-DIRECTED IRA FOR OTHER INVESTMENTS
  • FEES
  • EVENTS
  • EDUCATION
    • BLOG
    • THE LOUSY INVESTOR
    • SELF-DIRECTED IRA NEWSLETTER
    • SELF-DIRECTED IRA FUNDAMENTALS
    • SELF-DIRECTED IRA – HOW IT WORKS
    • FAQs
    • CALCULATORS
    • SELF-DIRECTED IRA PROHIBITED TRANSACTIONS
    • SIGN UP
  • PROFESSIONALS
  • Menu
BLOG
Self-Directed IRAs

The Advantages of a Self-Directed IRA Brokerage Account

May 25, 2020/in Blog, Brokerage Account /by Jim Hitt

What are the advantages of a brokerage account within a Self-Directed IRA? Many of the advantages are directly linked to the benefits of retirement investing. You’ll be able to use money that has tax protections. You may be able to make tax-deductible contributions, depending on your account type. But most of all, using a brokerage account within an IRA means that you’ll have the freedom to invest on your terms. And that can be a powerful thing for retirement investors who follow the beat of their own drummer.

With that in mind, let’s explore the advantages of holding a brokerage account within a Self-Directed IRA:

Advantage #1: Freedom

Ever look at a retirement account and wonder how anyone can choose from a few limited options for mutual funds? It’s not a fun notion. After all, an independent-minded investor wants to have all sorts of options to allow for diversification. Without that, you don’t really have the freedom you’ll need to create your own retirement strategy.

Using a Self-Directed IRA with a brokerage account allows you to manage your own retirement as you see fit. It allows you to construct a portfolio according to your own design—even if that’s to choose safe index funds for the long-term. If you want to be bold or if you want to be safe, there’s a lot you can do when you’re in charge of your own retirement.

Advantage #2: Tax Benefits

Before we move to the next advantages, we can’t go without mentioning the tax benefits here. If you hold a brokerage account within an IRA, then you have lots of incentive for investing more. For example, if you were to hold a Self-Directed Solo 401(k), then you could use that account to make tax-deductible contributions. The more you invest, the more you get to deduct. This is using before-tax money to create a larger portfolio with a Brokerage Account. The result: you’re incentivized to make more investments, which in turn can help you build a portfolio designed to create wealth over the long-term future.

Advantage #3: Diversification

Diversification isn’t an automatic with a brokerage account. It will be up to the individual investor to choose how they diversify. But with that said, it’s important to note that a brokerage account can include diversification possibilities that move across asset classes. A brokerage account can invest in REITs, gold stocks, ETFs, and a broad range of mutual funds to create a well-diversified portfolio that maintains a good amount of balance when there are troubles in the market.

Of course, retirement diversification can be much more than building a stock market portfolio. It can also include buying up real assets like precious metals and real estate, which is possible with a Self-Directed IRA.

We should note that there are levels of diversification that many investors choose to ignore. While some investors think that diversification is a mix of stocks, and others think it’s a mix of stocks and bonds, true diversification can go even beyond that, including a mix of asset classes that hedge against economic issues.

Should You Have a Brokerage Account with a Self-Directed IRA?

As a Self-Directed IRA administration firm, American IRA’s role is not to tell you how to build a retirement portfolio. We don’t advise on specific investments. But we can help inform you about the role that something like a Self-Directed IRA can play in your retirement. We can tell you about the possibilities of investing with a Self-Directed IRA, and we can help administrate the account.

Interested in learning more about Self-Directed IRAs?  Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation.  Download our free guides or visit us online at www.AmericanIRA.com.

For more information call us today at 866-7500-IRA(472)

Tags: Brokerage Account, self-directed ira
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on Google+
  • Share on Pinterest
  • Share on Linkedin
  • Share on Tumblr
  • Share on Vk
  • Share on Reddit
  • Share by Mail
You might also like
Self-Directed IRA Choosing Your Self-Directed IRA Provider
Private Companies Avoiding Real Estate IRA Tax Traps
Private Companies Self-Directed IRA Corner: Should You Roll Over That 401(k) To An IRA?
Self-Directed IRA Self-Directed IRA Funding Options
Self-Directed IRA Who Constitutes a “Disqualified Person” in a Self-Directed IRA?
Private Companies Should You Use a Self-Directed IRA if You Already Have Other Retirement Accounts?
Private Companies Self-Directed IRAs and Beneficiaries
Private Companies How Does a Self-Directed IRA Actually Work?

Search

Never miss an article!

Sign up below to be notified when we publish a new article.

We'll Make it Simple!

A Self-Directed IRA doesn't have to be complex. At American IRA we pride ourselves on making the process easy and worry-free for our customers. Schedule a free 30-minute call with our friendly staff and we'll walk you through everything you need to know, with no obligation.

Schedule NowWhy American IRA?
Kyle MoodyBusiness Development Specialist
You'll speak with Kyle or another member of our experienced team.

Recent Posts

  • Learn These Three Things About a Self-Directed SEP IRA Before Getting Started
  • Self-Directed Brokerage Account Definition
  • Questions to Ask Yourself Before Selecting a Self-Directed IRA
  • Self-Directed Real Estate IRA Prohibited Transactions FAQ
  • Best Companies for Self-Directed IRA Investors

Get started today!

1-866-7500-IRA(472)

Proudly Serving 50 States

Contact

135 Broad Street
Asheville, NC 28801
828-257-4949

/
© 2022 American IRA
DISCLAIMER American IRA, LLC, a North Carolina limited liability company, serves as a Third Party Administrator on behalf of the Custodian, New Vision Trust Company, a state chartered South Dakota Trust Company. As a Self-Directed IRA administrator we are a neutral third party. We 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). We 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 terms "we" and "us" refer to American IRA, with offices located in Asheville, NC and Charlotte, NC.
Setting the Table for Your Self-Directed Checkbook IRA Self-Directed IRA Self-Directed IRAs Little-Known Facts about Self-Directed IRAs
CLAIM YOUR 7 FREE SELF-DIRECTED IRA GUIDESDOWNLOAD NOW
+ +
Download Our Essential Guide to Self-Directed IRAs!

Download Our FREE Essential Guide to Self-Directed IRAs!

At American IRA, we pride ourselves on our exceptional educational materials that cater to everyone from beginners to advanced investors.

Our Essential Guide to Self-Directed IRAs is a great resource whether you’re new to investing or looking for increased diversification for your existing Traditional IRA, Roth IRA, SEP, Solo 401(k), SIMPLE, Health Savings Account, or Coverdell Education Account.

Download Now

  • Why a Self-Directed IRA?
  • How it Works
  • Investing: Popular Options
  • Real Estate
  • Private Lending
  • Tax Liens
  • Single Member LLC (a.k.a. Checkbook IRA)
  • And much more!
Share This
  • Facebook
  • Twitter
  • LinkedIn

Talk to a Specialist

Schedule a Call
Or call us now on
1-866-7500-472
Prefer email? Send us a message

Talk to a Specialist

Scroll to top