Many investors are still in the dark about self-directed IRAs. That’s not entirely surprising – it’s a strategy that only 2 percent of Americans use currently.
This retirement savings account, which gives you more investment options than just stocks and bonds, often isn’t mentioned by financial advisors because there isn’t much in it for them.
But after investors are opened up to the potential for tax-free wealth in a variety of assets and the ability to take control of their investments, their questions generally change from “Why would I want to open a self-directed IRA?” to “Why haven’t I opened a self-directed IRA yet?”
We jump at the chance to answer questions about self-directed IRAs. Here are some of the most pressing questions, and the answers:
Q: How can I be sure that my investment is allowable in an IRA?
A: IRS Publication 590 states what investments are prohibited in IRAs; these investments include artwork, stamps, rugs, antiques and gems.
All other investments, including stocks, bonds, mutual funds, real estate, promissory notes, foreclosures, and tax liens are acceptable as long as IRS rules governing retirement plans are followed. To learn more see IRA Rules
Q: My CPA/attorney/financial advisor hasn’t heard of a self-directed IRA. What Should I Do?
A: It’s not uncommon for trusted advisors to never have heard of self directed IRAs, given the relatively unknown nature of these accounts.
At Equity Trust we have worked with thousands of professional advisors across the country to educate them regarding IRA and self directed IRA rules so they can best customize advice to meet your personal needs.
What questions do you still have about self-directed IRAs and the power they give investors? Get answers during our free webinar, Thursday, February 9 at 8 p.m. EST. When you register, include a question you’d like answered.
Filed under: Uncategorized on February 6th, 2012