A recent article from MarketWatch took a rather harsh view of self-directed IRAs. Entitled “Self-directed IRAs aren’t for everyone“, it refers to self-directed IRAs as something reserved just for the wealthy elite (“those with at least $1 million in investable retirement assets”) and says that everyone else should “Otherwise, skip it.”
At Equity Trust, we’ve learned from our 35 plus years of experience that while a self-directed IRA isn’t right for everyone, you don’t have to be wealthy or a real estate mogul to be successful.
In fact, many of our most successful clients started out with small retirement accounts, doing small deals, building their account values over time (some more quickly than others).
Self Directed IRAs Allow True Diversification
The MarketWatch article focuses on real estate as the typical self-directed IRA investment and focuses on its complexities. For experienced real estate investors though, a real estate investment within a self-directed IRA is not much different from what they are used to.
Plus, it is important to remember the purpose of self-directed IRA-to put you in control and to invest what you know and understand best. You can take your knowledge and expertise and use it to secure your financial future. Whether your expertise is in real estate, foreign currency, livestock, music or anything else, the self-directed IRA puts you in control.
The MarketWatch article concentrates on the risks associated self-directed IRAs, but there are risks in any investment. Right now people who invested in Chrysler stock through a traditional brokerage may be wishing they had taken a different route.
Due diligence: 7 Things to Consider in a Self-Directed IRA Custodian
One point that we certainly do agree with MarketWatch on is the vital importance of doing your homework before making any serious financial institution. If you are serious about taking control and utilizing a self-directed IRA, be sure you know all that you can about the firm that will be holding your retirement funds.
We’ve put together what we think are the most important areas to consider when choosing a self-directed IRA custodian.
If you’d like to find out if a self-directed IRA really is right for you, give us a call at 1-888-382-4727.
Filed under: Uncategorized on May 29th, 2009