What Is a Self-Directed IRA?
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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
- Real estate (#1 asset) Click Here to see our Real Estate IRA Guide
- Hedge funds
- Private Ventures
- Private Lending
- Futures / Forex
- Precious Metals
- And more...
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.