What is a Self Directed IRA?

Imagine your financial paperwork sitting on a distracted broker’s desk until she finally gets around to hurriedly setting up the same old cookie cutter stock portfolio for you. You may have resigned your retirement accounts to this fate, thinking that it is the only option to save for your future. What if, instead, you could be an active participant in the process, collaborating closely with a dependable trustee to purchase a wide variety of savvy, stable investment assets and structuring your retirement portfolio according to your exact specifications? With a self directed IRA, this ideal vision could become your retirement planning reality.

Self directed IRAs, or individual retirement accounts, allow you as the account owner to decide which assets to invest in. When you open or roll over to this type of account, you’re able to choose from a plethora of investment options, including real estate, energy investments, promissory notes, and, perhaps most importantly, precious metals, an increasingly advantageous asset for retirement savings. Furthermore, self directed IRAs offer the tax advantages of traditional IRAs and 401(k)s, but typically lack many of their frustrating limitations and qualification requirements. If you’re ready to truly take charge of your retirement with a reputable self directed IRA provider, you can start by getting Advantage Gold’s free guide on the subject. Read on to learn more about how set up a self directed IRA, which financial firms offer ideal options for you, and ways to brighten your retired future with this powerful investment vehicle.

Getting Started

First, you’ll need to understand what a self directed IRA entails. Despite the fact that they’ve existed for over four decades, many investors aren’t familiar with these accounts. You may benefit from a self directed IRA if you:

  • Want to be in control of your retirement investment choices. This is the primary advantage of these types of accounts. If you’re interested in learning about the best self directed IRA investment options and using your newfound knowledge to build a brighter retirement future for yourself, this type of account may be just what you need. You can also work alongside a trusted financial professional to help you make these decisions, but ultimately, the choices are yours.
  • Are interested in diversifying your investment portfolio. Traditional IRAs and 401(k)s are often limited to paper assets, such as mutual funds, stocks, and cash. This can put all your retirement eggs in one basket, which may not be optimal. If you’d like to invest in other assets, you’ll need to open a self directed IRA to do so.
  • Are concerned about the volatile state of the economy and the shifting value of the dollar. Recessions, depressions, inflation, and deflation can wreak havoc on the conventional paper assets in traditional IRAs and 401(k)s. With a self directed IRA, you can secure your retirement portfolio with precious metals. Gold, silver, platinum, and palladium have inherent physical worth, have been traded for centuries, and they tend to increase in value during times of economic turbulence, so they can serve as an excellent defense against the risks of the stock market.

Undoubtedly, self directed IRAs require more thought and effort than other investment accounts. However, in exchange for this energy and attention, they offer exceptional advantages. If you want to reap the rewards of smart investing during your retirement, a self directed IRA could be the place to start. If this is your first foray into retirement investing, you can set up an account from scratch. If you already have an IRA, 401(k), or another type of account, you can perform a rollover to move your existing savings into a self directed IRA.

How Do I Set Up a Self Directed IRA?

If you’re intrigued by the prospect of selecting retirement investments for yourself, you’re probably wondering how to set up a self directed IRA. To do so, follow this series of steps:

  1. Educate yourself on the subject of self directed IRAs. Advantage Gold’s free guide can help answering any lingering questions or concerns you may have, particularly if you are interested in setting up a self directed gold IRA.
  2. Take stock of your existing accounts. If you have a 401(k), 403(b), traditional IRA, Roth IRA, SIMPLE IRA, or any other type of retirement vehicle, this can likely be converted to a self directed IRA. If you haven’t started saving for retirement yet, you can begin your portfolio with a self directed IRA.
  3. Research self directed IRA companies to learn more about your options. You will most likely need to work with an established firm to connect with an appropriate custodian, purchase assets, and monitor your account. For example, Regal Assets offers a free set up kit to help you begin the process of starting an account with their firm. You may also want to look into New Direction IRA.
  4. Choose a custodian. This person or entity will be the trustee of your IRA, so it is very important that they are trustworthy, dependable, and knowledgeable.
  5. Open a self directed IRA account or roll your current assets into one. If you have a small business, you may choose to start a self directed SEP IRA. SEP stands for “Simplified Employee Pension plan,” which has some similarities to a 401(k). An IRA specialist can help you determine the best self directed IRA for your needs.
  6. Pick out the portfolio of assets you’d like to invest in. Per IRS guidelines, your custodian will do the actual purchasing and storing of these investments, but you will lead this process. If you’re interested in the benefits of a precious metals IRA, you may choose to buy gold, silver, platinum, or palladium from a reputable supplier companies such as Dillon Gage, Monarch Precious Metals, or Royal Metals Group, LLC.
  7. Monitor your account, making adjustments as you choose through your custodian.

SD IRA Guide for Retirement

When it comes time to retire, you’ll need consult with your custodian to cash out your assets. As with all transactions relating to your self directed IRA, this will need to be done by your trustee according to your instructions. The exact process for doing so may vary depending on the types of investments you’ve made, whether you have a traditional self directed IRA or a self directed SEP IRA, and which self directed IRA provider you’ve chosen to work with. In any case, you will enjoy the fruits of your financial labor to fund your golden years.

Find The Best Self Directed IRA Companies

When you’re ready to truly get behind the wheel of your investment vehicle, it’s paramount to work with one of the best self directed IRA companies. Respected firms like New Direction IRA are available to assist you. You can also utilize Advantage Gold’s free guide to gold IRAs or check out Regal Assets’ free IRA set up kit as you learn more about self directed IRAs.