{"id":18665,"date":"2018-04-19T11:38:53","date_gmt":"2018-04-19T15:38:53","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=18665"},"modified":"2020-05-13T10:13:01","modified_gmt":"2020-05-13T14:13:01","slug":"3-things-know-self-directed-iras","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/3-things-know-self-directed-iras\/","title":{"rendered":"3 Things You Should Know about Self-Directed IRAs"},"content":{"rendered":"
You can choose to follow the regular IRA route with the bank or brokerage firm of your choice, but in doing so, you forfeit some of the freedoms you could have enjoyed if you\u2019d chosen to go the self-directed route. In choosing a self-directed IRA, you take on more responsibility, but you also open your portfolio up for more investment options. <\/span><\/p>\n Many banks and firms allow for IRA investments in only the traditional sense \u2013 so, via stocks and bonds or mutual funds. Once you choose a bank or firm with which to work (such as Fidelity or Vanguard), you can only invest in the vehicles they have to offer. Self-directed IRAs can offer access to real estate and precious metal investments in addition to those traditional options. This is only skimming the surface of things you should know when choosing whether to build a self-directed IRA or a Roth\/traditional IRA.<\/span><\/p>\n Who Would Benefit Most from this Type of IRA:<\/b><\/p>\n You\u2019re going to want to choose the self-directed IRA option if you are familiar with making investments of your own volition but are more knowledgeable about not-so-traditional markets. For example, you could be well-versed in the ways of agriculture and real estate investments, but not as experienced with the stock market. <\/span><\/p>\n Another acceptable reason for choosing a self-directed IRA is wanting a more diverse portfolio altogether. Maybe you have a hand in plenty of stocks, bonds, and mutual funds, but you\u2019d like to <\/span>branch out<\/span><\/a> (timber pun intended) into other investment vehicles, such as those of private companies and precious metals. In this scenario, a self-directed IRA would serve you well.<\/span><\/p>\n If your goal is to create a steady income stream that flows right into your IRA, the self-directed IRA with a real estate portfolio could be extremely appealing to you. Using this method, you can purchase a property and rent it out, and that revenue stream would flow right back into your retirement fund. You wouldn\u2019t be able to do this with an IRA of another sort. Think on these points when determining whether the self-directed IRA is right for your needs.<\/span><\/p>\n Self-Directed IRAs Require Greater Risk and Responsibility<\/b><\/p>\n It\u2019s often true that the greater the risk, and the more difficult the task, the better the reward. That\u2019s plenty true in most aspects of life. It\u2019s just as true in the world of investment. If you\u2019re familiar with the stock market, you\u2019re familiar with this concept; you know that the greater the risk in the stock, the more the indices swing up and down, the more likely you are to have a decent return in the end. When it comes to investing in a self-directed IRA, you must be comfortable with a little bit of risk.<\/span><\/p>\n