Self-Directed IRA

What They Don’t Tell You About Choosing a Self-Directed IRA

If you believe it’s come time to open a Self-Directed IRA, it’s easy to feel overwhelmed. This, after all, is a decision about taking control of your finances. And for many people, especially young investors, this can be a scary time. It means that it’s the first time you’ve had more direct control of what happens in your retirement account. But the good news is that there’s plenty to learn. The key is in finding informative sources about choosing your Self-Directed IRA that are reliable. With that in mind, let’s explore what many don’t tell you about choosing an IRA.

Choosing a Self-Directed IRA May Be More Out of Your Hands Than You Think

If you’ve been reading up on Self-Directed IRAs, you know that these give you the option to choose a wide range of investments for your retirement portfolio. So, it’s tempting to think that the same applies to your choice of Self-Directed IRAs. But you may be surprised to learn that your individual circumstances may have more to say about which account you ultimately choose than you think.

For example, a SIMPLE IRA is a choice reserved typically to businesses with fewer than 100 employees, and it typically works out well for those investors with small businesses who want to build a retirement program for themselves and their employees. But it doesn’t necessarily fit the lifestyle of a freelancer or independent contractor who might choose a SEP IRA instead. It will be up to you and your team to pick the appropriate Self-Directed IRA for your situation.

However, even with that said, there may be some IRAs that fit more universally. For example, the Roth IRA is a popular method of investing money for retirement, given the post-tax designation of the money you put aside in a Roth IRA. When you work with a Self-Directed IRA administration firm, remember that we won’t give you financial advice as it comes to picking these specific accounts or specific investments; instead, we serve as the custodian on the account, helping execute the trades when the account is ready to go. However, we are here to help with setting up an account and getting informed.

Your Self-Directed IRA Decisions are Not Final

The way some people talk about Self-Directed IRAs, you might figure that once you make a decision in one, that’s it—and you’re stuck with the account for the next forty years as you save for retirement. But these accounts can be more flexible than you think. In fact, many people with a lot of wealth to pack away will use legal tools like the “Back Door Roth” strategy that highlights just how flexible these accounts can be.

What’s important is that each investor understands the quirks and rules behind each investment account. It will be up to you to understand these rules and work within them. However, once you’re ready to begin investing, you can work with a Self-Directed IRA administration firm to help facilitate the transactions within this account. That means you can start investing in a wide range of retirement assets, such as real estate, and completely change the dynamic of your investment portfolio—if that’s what you choose.

Ultimately, the decisions behind your retirement plan will be up to you. Work with good financial advisors and tax professionals. But also make sure that you understand the possibilities present with a Self-Directed IRA, and you can choose the right one for your situation.

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