Are you planning on saving for your retirement? What about using your IRA to make investments? It’s one of the wisest things anyone can do in their entire lifetimes. Even if you’re just interested in earning enough money through your savings account for purchasing a house, you need to make sure you understand self directed IRA investment options.
Why a self-directed account? Because you will not be allowed to use your money for certain types of investments with a traditional or Roth IRA account. With an SDIRA (self-directed) account, you have more flexibility by expanding your investment options to include various assets, including those involving real estate.
Roth and Traditional IRAs are typically used for mutual funds or CDs. In contrast, you can use SDIRAs for real estate, tax lien certificates, promissory notes, undeveloped land or raw land, water rights, mineral rights, precious metals, and maybe even crypto-currency. There might also be options for you to invest in LLC membership interest.
Having checkbook control of your savings with this type of account is very beneficial since you get to have more of a say about you where your money goes. Investors can use their money to save in a tax-deferred account and diversify their assets by putting their money into the non-traditional assets, all of which are administered by a custodian or trustee.
When it comes to self directed IRA investment options, you should be careful about where you decide to open your account. A custodian entity must hold an IRA account set up in the US, whether it be a credit union, bank, trust company, or any other licensed and regulated entity as an official “non-bank custodian.”
Self Directed IRA Investment Options That Require Some Skills
For an SDIRA account, a custodian doesn’t typically provide investment advice. However, they should still be competent enough to have good, sound knowledge of the industry to provide detailed yet easy-to-understand material and resources.
Another thing to consider when it comes to self directed IRA investment options is how you will go through the transfer process. You’ll need to fund the new SDIRA account via taxable income/rollover from the traditional retirement or IRA account. The process should be easy and smooth, and you should be allowed to continue contributing to the SDIRA account.
To simplify matters, look into services from Rocket Dollar. It’s the best place to get started with self directed IRA investment options. Customer service is beneficial, and you’ll get all of the tools you need to help you get going.