How to Tell When You are Ready for a Self-Directed IRA

How to Tell When You are Ready for a Self-Directed IRA

The idea of getting involved in a Self-Directed IRA may seem like a far-off idea for some people. Maybe they think it would be good for their retirement, but they do not think they have their affairs in order yet. But you would be surprised. Investors who want to diversify their assets beyond the usual stock investments, or simply want to guide their own retirement, may be more ready than they know. Here are some of our best ways to tell if you are ready to start the paperwork on a Self-Directed IRA—or at least call an IRA administration firm.

You might be ready for a Self-Directed IRA

…When you have done your homework.

We do not like to assign people homework. But it is not a bad idea to do your due diligence as you consider a Self-Directed IRA. Do you know how they are funded, for example? If so, you will have fewer obstacles as you go down this path. You will have fewer surprises along the way. And the fact that you were willing to do the homework already shows that you are the kind of diligent investor for whom a Self-Directed IRA might be entirely appropriate.

You also have to think about homework beyond just setting up the Self-Directed IRA. As an IRA investor, you will be making your own investment choices. You will need to make these selections yourself, as your Self-Directed IRA administration firm won’t be making investment recommendations.

…When you are itching to diversify your assets and exercise more control.

These days, many people look at retirement as a simple prospect. Put money away in the stock market and keep doing it. And there is nothing wrong with that strategy. We at American IRA are not an investment advisory firm; we do not tell you how to invest your money. We simply administrate Self-Directed IRAs.

However, if you do want to turn to a Self-Directed IRA to diversify your assets and exercise more control, it may be a sign that you are ready to pursue this other way of investing. This strategy tends to be best for people who want to control their retirement assets more closely. Or investors may simply want an alternative to the mainstream stock investing that can be so volatile these days. Whatever your reason, itching to diversify one’s assets is a sure sign that you may be ready to seek out a Self-Directed IRA of your own.

…When you have experience investing in a nontraditional retirement asset.

One way to tell if you are ready for a Self-Directed IRA is if you already have experience with a nontraditional retirement asset. For example, let us say that you’ve had success with real estate investing with your personal funds. Maybe you have built up experience researching potential rental properties. That experience could prove invaluable when you invest with a Self-Directed IRA. Using that IRA means that you would be able to leverage your experience while experiencing the tax benefits of investing within a retirement account.

Of course, there are some new rules to consider when you do make the switch to investing in a Self-Directed IRA. It is important to have someone on your side that can help with administration. That is why so many people turn to an experienced Self-Directed IRA administration firm. By serving as the custodian on your account, this firm can be an invaluable asset to help simplify the process. The idea of investing within a Self-Directed IRA does not have to be so scary. With the right approach, it can be highly intuitive.

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

Rate this post