The Self-Directed IRA Alternative
An Efficient Alternative to a Standard IRA May Be the Self-Directed IRA
A Self-Directed IRA allows an IRA owner to invest his/her funds in any investment that is not expressly prohibited by the IRS. Instead of being limited to traditional investments, an IRA owner literally has a world of possibilities. Investments in the United States, as well as outside the United States, are possible.
A Self-Directed IRA is an IRA that has been placed with a Custodian who allows you to take full advantage of the flexibility the IRS has built into IRA investing. In most
cases, it has not been the IRS that has limited the investment choices of IRA owners; it has been the Custodians and Financial Advisors. You are allowed to invest in almost anything you desire, with just a few exceptions.
Self-Directed IRAs can potentially provide solutions for an IRA investor to solve
some of the problems they face in retirement or when approaching retirement. The real key is allowing you to invest in what you want, when you want, how you want,
and where you want.
Self-Directed IRAs are governed under Internal Revenue Code Section 408, just like all IRAs. You must follow all of the same rules, laws, and regulations, but you get to invest your IRA funds the way YOU want to invest.
If you want to invest in a business – YOU CAN
If you want to invest in a promissory note – YOU CAN
If you want to invest in alternative investments – YOU CAN
If you want to invest in real estate – YOU CAN
If you want to invest in many other non-traditional investments - YOU CAN
You can establish your Self-Directed IRA account simply by:
Transferring your current IRA balance to a Self-Directed IRA Custodian
Transferring your current employer retirement plan to a Self-Directed IRA Custodian
Funding your current IRA contribution to a Self-Directed IRA Custodian
While this process is fairly easy to complete, you must make sure to follow all rules, regulations, and laws regarding transferring your current IRA, transferring your current retirement plan, and/or investing your current IRA contributions.