Remember attending “101” classes in college? You didn’t feel ashamed about your lack of knowledge. That’s why you were there, after all. To learn. With Self-Directed IRAs, you may have to put yourself back in the first-year student’s seat. If you’re interested in taking control of your retirement investments, a Self-Directed IRA might be the perfect solution for you. And now may be the perfect time to start learning about them.

Self-Directed IRAs are a type of Individual Retirement Account that allow you to invest in a much broader range of assets beyond traditional stocks, bonds, and mutual funds. With a Self-Directed IRA, you have the flexibility to invest in alternative assets such as real estate, private equity, precious metals, and more. Let’s dig into what these accounts are, how they work, and how they might benefit you as a retirement investor.

What is a Self-Directed IRA?

A Self-Directed IRA is a retirement account that allows you to invest in alternative assets. Unlike traditional approaches to IRAs, which limit your investments to stocks, bonds, and mutual funds, a Self-Directed IRA gives you the ability to invest in a much broader range of assets. Self-Directed IRAs are not a new type of IRA; they are simply a different way of investing in your retirement future.

How a Self-Directed IRA Works 101

Like any IRA, a Self-Directed IRA is a tax-advantaged retirement account that allows your investments to grow tax-free. The difference is that with a Self-Directed IRA, you can choose the investments that you want to make, rather than relying on a financial advisor or a brokerage firm to make those decisions for you. This gives you greater control over your retirement investments and the ability to make investment decisions based on your personal interests, knowledge, and expertise.

What Are the Benefits of a Self-Directed IRA

The primary benefit of a Self-Directed IRA is the ability to invest in a much broader range of assets beyond traditional stocks, bonds, and mutual funds. This can help to diversify your portfolio and potentially increase your returns. Additionally, a Self-Directed IRA gives you greater control over your investments and the ability to make investment decisions based on your personal interests, knowledge, and expertise.

What Are the Risks of a Self-Directed IRA?

With greater control comes greater responsibility. You’re the one in charge of your account now. When you invest in a Self-Directed IRA, you are responsible for making investment decisions and conducting due diligence on the investments that you choose to make. This requires a certain level of knowledge and expertise, and if you make poor investment decisions, you could potentially lose money.

How Can You Open a Self-Directed IRA for Yourself?

Opening a Self-Directed IRA is similar to opening any other type of IRA. You’ll need to choose a custodian or trustee to hold the assets in your account, and you’ll need to complete the necessary paperwork to set up the account. Once your account is set up, you can start making investments in the assets that you choose.

A Self-Directed IRA can be a powerful tool for taking control of your retirement investments and potentially increasing your returns. However, it’s important to understand the risks involved and to have a certain level of knowledge and expertise in the investments that you choose to make. If you’re interested in learning more about Self-Directed IRAs, call 866-7500-IRA to speak with one of our team members. You’ll likely discover that the process of starting out with a Self-Directed IRA doesn’t have to be intimidating.

Was our Self-Directed IRA 101 helpful? Let us know!

Like working with American IRA? Leave us a review on BBB and Google!

Don’t forget to follow us on social media for updates and events: Facebook   LinkedIn   Twitter   Instagram   YouTube