Self-Directed ROTH IRA

Self-Directed IRA Tips for Beginners

Using a Self-Directed IRA comes with immediate and obvious benefits: tax protection, the ability to think long-term, and the ability to invest in a wider range of retirement assets than most people are used to. But what if you’re a beginner? How can you begin to unlock the potential within a Self-Directed IRA? What are the tips you’ll have to know? We decided to collect a few of them here so you can navigate the world of Self-Directed IRAs with aplomb from the very beginning. Here’s what you’ll need to know.

Self-Directed IRA Tip #1: Spend Plenty of Time Picking the Best Account

When it comes time to sit down and choose your IRA, you’re going to feel a bit overwhelmed. That’s normal. You’re going to see the Traditional IRA, the Roth IRA, the SEP IRA—the list goes on and on. And you’re not going to be sure which is best for your situation. That’s okay! Talk it over with a financial adviser to find out which is best for your situation. And remember even if you do choose an account and want a different one later, you may be able to roll that over.

Self-Directed IRA Tip #2: Learn the List of Non-Traditional Assets

You may hear this phrase if you read our website a lot: Non-traditional assets. What does it mean? Well, it simply means that there are assets that you traditionally hold in an IRA, and some you don’t—but can. For example, a Traditional IRA asset is a mutual fund or a share of stock. However, did you know it’s possible to own a piece of rental property within a Self-Directed IRA? A piece of real estate is, of course, a traditional investment asset, but it’s non-traditional with retirement accounts because not many people even know it’s a possibility.

To expand your horizons, consider learning the list of non-traditional assets, which include real estate, precious metals, tax liens, private companies, and more.

Self-Directed IRA Tip #3: Avoid Working with a “Disqualified Person” at Every Turn

When you first read about using Self-Directed IRAs, it can be tempting to get a little too excited about the possibilities. What if you rented out your retirement property to someone you know, guaranteeing rental income into your IRA? Flag on the play! You can’t actually work with disqualified people within a Self-Directed IRA, such as a relative or a business associate. You can have a property manager rent out a real estate property within your IRA, however, presuming that you don’t transact with a disqualified person.

Self-Directed IRA Tip #4: Do Your Homework

Finally, we get to one of the keys to being a beginner with a Self-Directed IRA: remember that you’re in charge. You’re not choosing from a list of pre-approved investments. You’re going out into the world and seeking out your own investments. And this means that you need to do due diligence, because you have the power in your hands. No one is going to interrupt your investments and say “don’t do this! It’s a bad idea!” Instead, you have to form a clear picture of which investments work for you and your retirement strategy.

Want to know more about how it works? You’d be surprised at how easy it can be to get started. You simply need to find the right Self-Directed IRA administration firm and get in gear. 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

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