Following are some frequently asked questions about self-directed IRAs.
What Can I Invest In?
Allowable Investments at uDirect IRA Services, LLC Include the Following
Residential real estate, including: apartments, single family homes, and duplexes
Commercial real estate
Undeveloped or raw land
Real estate notes (mortgages and deeds of trusts)
Private limited partnerships, limited liability companies, and C corporations
Tax lien certificates
Oil and gas investments
Publicly traded stocks, bonds, mutual funds (see our Brokerage Information)
Private stock offerings, private placements
What Investments are Not Allowed?
You can invest your IRA in anything except Life Insurance Policies and Collectibles. For more information regarding rules governing self-directed IRA or 401(k) investments, please see IRA Rules.
What is a Self-Directed IRA?
A self-directed IRA is a retirement account that puts you in control of choosing your IRA's investment. Unlike most retirement accounts whose investments are chosen by an account and/or fund manager, you choose what to invest in with a self-directed IRA. This allows you to diversify your retirement portfolio’s investment and maximize returns.
What Types of Investments Can I Make with My Self-Directed IRA Funds?
The IRS guidelines spell out what you cannot invest in (IRS Pub 590). This is actually by design because the list of what you cannot invest in is much shorter than what you can invest in.
Following are some of investments that are prohibited with a self-directed IRA:
collectibles (eg, coin collections);
S-Corp capital stock; and
The investment possibilities with a self-directed IRA are practically unlimited. Following is small listing of what you can invest in: all forms of residential and commercial real estate, mortgages, mutual funds, stocks, private placements, notes, tax liens, trust deeds and more.
Because there are such a broad range of investment vehicles, you can structure the diversity of your portfolio any way you like.
Can I Open a Self-Directed IRA Online?
There are a couple of ways to open a self-directed IRA.
You can print out the forms, fill them out and then fax them in. Our fax number is 714-460-5506
Contact us at 866-538-3539 and one of our knowledgeable self directed IRA account specialists will assist you in opening your self-directed IRA.
Can I Roll Over or Transfer Existing Retirement Accounts into a Self-Directed IRA?
Yes, you can. You can do cash transfers, rollovers from existing retirement accounts, transfers from stock and mutual fund accounts, and transfers from brokerage accounts. How long it takes will depend on what type of account you are transferring and/or rolling over. The process can take anywhere from a few days to a couple of months. Immediately upon the funds clearing in your account, you can start investing (subject to initial statutory 7 day right of rescission).
It's that simple.
Self-Directed IRAs Seem Like an Ideal Way to Take Control Over My Retirement Funds. Why Don’t More People Know About Them?
Simple politics and marketing might explain this. To explain, traditional IRA suppliers control roughly 97% of the IRA market. And, like any organized lobby, they use their marketing dollars to stay front and center with consumers.
Furthermore, IRA managers work for companies who promote certain IRA products and services. As they make their money from selling products the company promotes, it's no wonder that self-directed IRAs have not become mainstream. At uDirect IRA Services we do not sell any investments.
More and more Americans are taking control of their hard-earned retirement dollars. The internet makes it easy to conduct detailed research, get instant feedback, track investment vehicles and make informed investment decisions.
Here Are Some Helpful Resources
The Securities and Exchange Commission (SEC) is dedicated to helping Americans protect their investments.
The North American Securities Administrators' Association (NASAA) provides information on investor education.
The Financial Industry Regulatory Authority (FINRA) has an
"Investor" section on Smart Investing.
American Association of Retired Persons (AARP) includes a section on scams, fraud and consumer protection.
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