All IRAs are not the same. A regular IRA and a standard self directed IRA are handled by a broker or custodian. Though it is your funds, your private investments, securities and deposits are subject to their in-house polices.
You may even be advised that these regulations are set up in order to conform to the law. The simple truth, though, is that the law simply restricts something that could circumvent the purpose of maintaining an IRA, which is to save funds for your retirement. Apart from that restriction, you are not limited by any of the other rules imposed upon you by the financial institution regulating your account.
Thankfully, with a truly self-directed IRA LLC, you’ve got checkbook control and are free to choose how, when, and where you’ll invest your funds. Although you will still have a custodian and you will still need to conform to their rules, you aren’t restricted by interference from custodial oversight and unwarranted waiting times because of bureaucracy.
Here, then, are 10 ways to make the most of a truly self-directed IRA:
1. Since you have checkbook control, you could be flexible in investing in what you want whenever you want to get it done. With the limitations of accounts handled by IRA custodians, you wouldn’t be able to make individual real estate investment properties.
2. You can take advantage of the tax-free or tax-deferred benefits of possessing an IRA.
3. You are not confined to solely those investments marketed by the broker. You may, if you wish, invest money in a private company, precious metals like gold and silver, natural resources like coal and oil, or even good investment vehicles such as real estate.
4. You have a distinct tax advantage over other investors, which is certainly handy if you are competing for a margin.
5. You are able to take appropriate steps swiftly on a time-sensitive investment, with no bureaucratic delay to have your money made available to you. You could write a cheque or have money wired from your account.
6. Your account is a breeze to operate and deal with as you have little IRA custodial interference and are free to make your own investment decisions based on your research on what is the best investment opportunity at the moment.
7. You may be able to take complete advantage of investments in connection with foreign assets.
8. You’ve got increased protection from folks who may have an eye on having your money, specifically collectors or litigators.
9. You have to deal with much less paperwork than those with traditional IRAs or regular self directed IRAs, and this faster processing means you can get in and out of financial opportunities very quickly. This is particularly invaluable when dealing in an aggressive financial market.
10. You can be in several markets at the same time and send all of the gains to one consolidated account.