What Is a Self-Directed IRA?

What Is a Self-Directed IRA?

Most people understand traditional and Roth IRAs. But one question we hear frequently is, “What is a self-directed IRA?” A self-directed IRA is a retirement account for an individual who wants complete control over their retirement investing decisions. 

The answer is easy: It is a powerful tool individuals use to reach their retirement planning goals. Self-directed plan owners control their funds and the type of investments their plans purchase. So, If that describes you, it’s also time that you learn about self-directed IRAs.

Why should you learn about a Self-Directed IRA?

IRAs that are held at traditional brokerage plans only let you invest in stocks and bonds. A self-directed IRA can invest in any type of asset, including alternative assets.  Additionally, plan owners get to choose their own investments; they do not rely on a third party to do so. These differences are especially relevant to those who want control of their investment funds and decisions.

Typical Alternative assets in a Self-Directed IRA are

Benefits of Self-Directed IRA

  • Easy and Fast to Set up
  • Tax Free Growth
  • All types of IRAs qualify, including SEP and Simple IRAs

These assets grow income in the IRA just as any traditional asset does on a tax-sheltered basis. The account owners choose investments based on their own knowledge and experience. Alternative assets have the potential to earn better returns in a shorter length of time than traditional assets. Individuals choose rentals, land, private equity, gold, private lending options, and much more to achieve their goals.

Midland Trust Company is a self-directed retirement plan custodian serving clients across the nation. Our clients have the Freedom to Invest™ in what they know best. Our clients use many alternative assets to earn tax-sheltered income. To retire successfully, diversity is key. Understand your options. Make your own decisions. Click here to Open a self-directed IRA with Midland today.

Check out our Case Study Guide with unique real-client examples. 

Please feel free to contact Midland Trust to answer your questions on Self-Directed IRAs. 

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