You might have heard of self-directed IRAs as they have been gaining in popularity as of late, but you might not know if they are all they are cracked up to be. Basically, a self-directed IRA is one that puts you in control over what your IRA invests in. While you might think you have this control already with a standard or ROTH IRA, the fact is that only a self-directed IRA lets you invest in almost anything you can imagine.
Not an Investment, Really
What’s important to note is that there is no IRA that is an actual investment. No matter what type of IRA you have it is simply a tax shelter that allows you invest your money and plan for your retirement. So, the notion that a standard IRA or ROTH IRA would perform better than a self-directed IRA is not one that holds water as any appreciation of money within an IRA will depend solely on what that money gets invested in.
When you think of an IRA you might think of such investments as stocks, bonds, CDs, or even mutual funds. However, what you don’t think of is owning physical assets such as gold or real estate. However, with a self-directed IRA you can own real assets. This means your self-directed IRA can be invested in gold, silver, real estate, and more. As long as you stick to the guidelines you can own many assets that you simply can’t in other types of IRAs. This increases your investment options and allows you to invest in investment vehicles that you might have a great deal of knowledge in.
Many investments require you to gain access to funds rather quickly. With a truly self-directed IRA you will have check writing privileges. So, once you find an investment that suits your needs and your desires, you can secure the investment right away as long as you have the funds available in your account. This is in contrast to having to wait for funds to become available or be sent to you.
More of Everything
A self-directed IRA will not be for everyone, but the fact remains that they do offer more of everything. With a self-directed IRA you get increased investment flexibility as well as total control. Despite what some would have you believe, a self-directed IRA is more precious than it is preposterous as the advantages are clear and real.
Learn more about how a self-directed IRA can be invested in gold by clicking here.
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