The one thing about self-directed IRAs that really make them valuable and exciting is the fact they give you so much power to make investment decisions on your own. When you have a regular IRA chances are you are trusting some anonymous fund manager to make investment decisions with your retirement dollars.
With this great freedom comes some responsibility. Self-directed IRAs do require more research and due diligence on your end. As a provider of these types of accounts the one thing we’ll never do is tell you what to invest in or if your deal is a good or bad idea for you financially.
We find people have the best luck investing in asset classes they are familiar with. Maybe real estate is your thing. If that’s the case you have the freedom to invest your retirement into this asset class and reap the rewards in your retirement years. Our account-holders also invest in private stock, precious metals, raw land and a lot more. Nothing replaces good due diligence so make sure you do your homework before you invest.
It’s important to understand the rules before you launch into a self-directed IRA investment and that’s what uDirect IRA Services is here for. We provide all kinds of investor education and will walk you through the process.
Self-directing an IRA is basically a 3-step process to 1) Open an account 2) Fund that account and 3) Invest. It goes further than that, of course. Once you have invested all proceeds flow back into your IRA. Similarly all expenses of the IRA are paid for by the IRA.
What happens if you invest and your investment doesn’t pay off or worse, you are the victim of fraud? In cases where the asset value goes to zero a formal “valuation” needs to be requested at that time. A custodian cannot accept an e-mail or letter from the IRA owner saying the investments didn’t pan out.
The ultimate goal of a self-directed IRA is to invest tax-free (Roth) or tax-deferred to save for retirement. There is a $6 Trillion deficit between what Americans have and what is needed to retire so start saving now. Like the old saying goes, the best time to plant a tree was 20 years ago. The second-best time is now. Start now and if self-direction is your choice we are here to help.