Looking around the Internet, it’s easy to think that using a Self-Directed IRA is only for investors who want to invest in real estate and precious metals. And while those are indeed two great ways to put money aside for retirement using the freedoms possible with a Self-Directed IRA, it is by no means the limit of what you can do. In fact, if you want to use your Self-Directed IRA for a more straightforward approach, you can use a brokerage account within a Self-Directed IRA to invest in traditional stocks, just like everyone else you know who’s saving for retirement. Here’s how it works.

Using a Self-Directed IRA Brokerage Account: The Fundamentals

While many people associate Self-Directed IRAs with Gold IRAs or Real Estate IRAs, there’s no reason you can’t also use the freedom of a Self-Directed IRA to choose a more conventional path. And while a word like “conventional” may seem arbitrary in this context, some people view themselves as that—conventional investors. They just might not enjoy the limited options presented by other companies’ retirement plans, which puts them in an odd position. They know they want a wider variety of potential stocks and funds to invest in, but they don’t know how to achieve it. Using a brokerage account within a Self-Directed IRA can be one way to do just that.

Why Open a Brokerage Account Within a Self-Directed IRA?

There are a few reasons an investor might choose this path:

• Less in fees. Moving funds within a brokerage account can mean not incurring the wire and check fees that other brokerages might require. Once your funds are in the account, it’s easy to move them around—and with the tax protection that comes with a Self-Directed IRA.
• More diversification. Maybe you want a brokerage account for a more conventional approach to retirement. Or maybe you want to diversify your account holdings to include less-traditional retirement assets, but valid retirement assets nonetheless. Using a Self-Directed IRA, you can hold a brokerage account as well as non-traditional assets like precious metals, provided you do it the right way.
• Speed. Let’s say you wanted to transfer funds from custodian to custodian to take advantage of a buying opportunity. This can take up to 14 days! But with written direction from you, the account holder, American IRA would be able to get funds from your brokerage account within 2 days, giving you the flexibility to move quickly on new deals if you see them. For many people who know retirement investing, speed to jump on an opportunity is a non-negotiable benefit of their style of investing.

Using a Self-Directed IRA for a brokerage account might sound conventional. But you’ll find that the flexibility of a Self-Directed IRA also means you’re free to use this in an unconventional way. Want to add other assets, like real estate, to a Self-Directed IRA? You can do so. Want to invest in traditional stocks and bonds through your brokerage? You can do that, too.

Taking the Next Steps for a Brokerage Account Within a Self-Directed IRA

It can take between 5 to 10 business days to open a brokerage account, so if you’re ready, there’s no time like the present to get started. We encourage you to read more about opening a brokerage account here at American IRA. But if you know what your decision is and you’re ready to reach out, there’s no time like the present to do so! You can give us a call at American IRA by dialing our number (866-7500-IRA). We’ll look forward to hearing from you.