Ramblings

March 21, 2008

Self Directed IRAs

Filed under: education, finance — michaelangela @ 5:27 pm

I’ve just started hearing about these… now I just need something to invest!

A Blog About Nothing: The Best Self Directed IRA

What is a Self Directed IRA?

A
Self Directed IRA is an IRA that allows you to choose your own
investments. Your current IRA provider will probably tell you that you
can choose your own investments — “Oh sure, you can choose between the
Janus Fund and the Fidelity Fund.” No, that’s not what I’m talking
about. With a real Self Directed IRA, you can invest in not only stocks
and mutual funds but also real estate, businesses, notes, and just
about anything you want, as long as you avoid certain prohibited transactions.
Prohibited transactions are simply transactions where you use the money
to benefit yourself instead of your IRA, but it’s important to read and
understand the details.

So if you’re tired of losing money in
the stock market and getting jerked around by self serving mutual fund
managers, a Self Directed IRA is the way to go.

You can easily
convert a non Self Directed IRA into a Self Directed IRA. You can also
convert a 401K, if you have one sitting around from a former employer.
If you have a 401K with a current employer, you probably don’t want to
convert it to an IRA, since you would no longer get matching funds.

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1 Comment »

  1. Unfortunately, the trouble with self-directed IRAs companies is that they are not investment advisors. The issue that one typically faces is that your 401K provider has limited options and you have TOO little say in what you invest in. Once you have identified a self-directed IRA provider and you move your funds there they say ok…you are now good to go and then you have to do your due dilligence to identify an opportunity to invest in and you have to keep doing that as long as you plan to self-direct. You also have to make sure that the business model that the investor subscribes to is one that you believe in.

    Regards,
    Wim
    http://www.gilliardgroupllc.com

    Comment by wimtaylor — March 31, 2009 @ 7:48 pm


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