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Unlock the Power of Your Self-Directed IRA

If you want to be prepared for your retirement, then take charge of  your financial future. Unlock the power of your self-directed IRA.

Are you tired of making investments that someone else thinks are good for you? Would you like to make investments that you know something about and have direct control over? Consider the power of diversifying your retirement investments through a ‘self-directed’ IRA.

Unlock the power of your self-directed IRA, a well-kept secret that Wall Street doesn’t want you to know about. Why? Because there is no money in it for the big manufacturers of financial products.  These firms make money when you buy a pre-packaged product like a mutual fund, unit investment trust, limited partnership, REIT, insurance policy or annuity.  With a true self-directed IRA, you can bypass Wall Street and invest directly on Main Street – literally.

Unlike traditional Individual Retirement Accounts, you can invest in a range of alternatives beyond just stocks, bonds and mutual funds. Under Internal Revenue Code rules in place since 1974, you can invest in real estate, lease options, mortgage notes, real estate deeds, tax liens, limited partnerships, privately-held operating companies and much more. Almost everything is available except collectibles, certain types of coins and life insurance. In limited cases, an investor may even use funds from a previous employer’s 401(k) plan to fund the start-up of a business or franchise. (But this is very tricky so you'll need specialized guidance if you're thinking about this.)

This approach can be used to fund a self-directed IRA or a solo 401(k) for a small one-person business that can also extend to your spouse.

Most individuals don’t know they have the power to do this and most financial sales organizations have no incentive to help you. But there are some fiduciary advisory firms that know the rules and can put you in touch with the specialized bank custodians which must hold these assets in order to qualify under the IRS rules.

Is this something that you should do with ALL your retirement money?  Nope.  You'll never likely hear a fiduciary investment adviser ever say that.  But this is certainly one very useful way to diversify your investments with non-correlated, alternatives.  But you'll need to be cautious since many non-traditional investment options may also be illiquid.  Striking the right balance is key and while Wall Street may not be there to help you, a fidcuciary advisor may be able to provide you with the guidance you need to explore this option.

More information is available through IRS Publication 590 or by reaching out to a fiduciary financial advisor familiar with self-directed IRA rules and custodians (see www.FeeOnlyNetwork.com).

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Comment   |  4 years, 5 months ago from Amesbury, MA