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

How to Start a Self-Directed IRA

For people who have been researching Self-Directed IRAs for what seems like months on end, the process can start to feel a little complicated. We call this analysis paralysis. By thinking about it too much, you may have forgotten just how easy it can be to get started with a Self-Directed IRA! Fortunately, even if the process seems a little intimidating, we’ve found out a way to break it down into its constituent parts. Here’s what you need to know about opening or starting a Self-Directed IRA if you’re considering opening one with American IRA.

Starting a Self-Directed IRA: the Basic Steps

Let’s say the thinking is already done. You’ve done your research, and now you’re convinced that you want to start a Self-Directed IRA with American IRA. That’s great news! But you’re not quite done yet. Here are what the basic steps between you and retirement investing will look like.

  • Open your Self-Directed IRA with American IRA. This will require knowledge of what kind of IRA you want to open, such as a Self-Directed Roth IRA. You can then reach out to us at American IRA by dialing our number: 866-7500-IRA. We’ll help you complete the necessary steps to open the Self-Directed IRA. It’s often much less complicated than you might be thinking.
  • Fund the account. Once the Self-Directed IRA is open, you’re going to need funds within it before you can direct American IRA to buy an asset on your behalf. There are a few different options here, including contributions, conversions, rollovers, and transfers. If you’re not sure which is best for you, it may be time to speak to a financial advisor. However, in many cases, it can be as simple as transferring over an existing retirement account.
  • Pick your investment. With a funded Self-Directed IRA now working in your favor, the fun begins. What will be the investment of your choice? The first step is to identify your investment. Do your due diligence, of course, and leverage the experience you have in investing to make sure that you identify an investment that suits your particular retirement investing plans. You can even consult with a financial advisor on this point. Once you know your investment, you can move to the next step.
  • Send American IRA a Buy Direction Letter. This is a document that puts your intention to buy something into writing. It will also include details as to what’s specifically being bought. From there, you can make sure to put everything in the account’s name, and not your own personal name, as your account will technically own the investment. This is done by filling out in investment form which can be found on our website.
  • Authorize the payment. This is the basic document that will authorize American IRA to pay the basic expenses required by holding your Self-Directed IRA investment, such as a monthly payment to a property manager who is overseeing the property you hold in a Self-Directed IRA.

It may sound like a lot, but once you get the hang of it, you’ll be amazed how easy it can be to add an investment to a Self-Directed IRA investment portfolio.

What’s Next?

From where you’re standing, seeing five steps like those above might sound like a lot. But in truth, any retirement investor has to simply embrace the next step in their journey if they want to get something done. And in this case, the next step is reaching out to American IRA if you’re interested in setting up a Self-Directed IRA. If that’s what you want to do—or if you’re interested in simply learning more—you can reach out to us here at American IRA by dialing our number at 866-7500-IRA.