Self-Directed IRA

What Investors Should Know About Self-Directed IRAs Before a New Year

The New Year is always a powerful point at which to begin a new resolution. But for retirement investors, is it a good time to get started with a new retirement plan? For an investor who is thinking about a Self-Directed IRA, the answer is that any time is good. Consider the old saying: “The best time to plant a tree is twenty years ago. The second-best time is now.”

Does that same logic apply to the Self-Directed IRA? Here is everything you will want to know about Self-Directed IRAs before starting a new year:

A Self-Directed IRA is a Powerful Way to Invest in Alternative Asset Classes

Investors who want to start investing in nontraditional asset classes within a retirement account should think about Self-Directed IRAs. That is because they can use a Self-Directed IRA to easily invest in asset classes such as real estate and precious metals. There is nothing particular about using the new year in this case, but it is important to remember that contributions are measured in terms of years—for example, a certain amount of dollars per year into a specific type of account.

For that reason, now is the time to start doing homework on the type of Self-Directed IRA that might be right for you. You may already know what kind of investments you want to think about when it comes to the new year. Or you may simply know that you want to start investing in some way. But it is important to start thinking about the strategy that will best facilitate your goals. For instance, if you want to build a powerful real estate presence in your retirement portfolio, a Self-Directed IRA is a powerful way to do that. It is important to start doing your research sooner rather than later.

Do You Have to Rush Before a New Year?

When you are talking about retirement, it is important to note that everyone’s situation is different. What might be true for a 55-year-old trying to make “catch-up contributions” towards retirement simply will not be true for someone who is 25 and starting out on their investment journey. We at American IRA are not an investment advisory firm and will not be making specific investment recommendations. Instead, our role as a Self-Directed IRA administration firm means that we will act as the custodian on the account. You are the one in charge.

When you get started with investing for retirement, it is generally better to get things right than to be in an absolute rush to fill out your paperwork. Know what you are signing. Read thoroughly. You want to do your research. You want to know what you are getting into. For that reason, we can recommend a few different places you can get your research started:

  • Learn about the different types of Self-Directed IRA accounts. We have a page here on American IRA that introduces the different types of accounts available. This is an important page to visit because it will introduce you to these different concepts. You will want to know what the specific rules are for each account so you know what your investments might look like in the future.
  • Learn about your specific investment options. When you invest in a Self-Directed IRA, after all, you will have access to nontraditional retirement assets. Now’s the time to think about what assets you will want to have in your account. You are the one in charge, and you will get to direct your Self-Directed IRA administration firm as to what to do on your behalf.

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