Are you looking to create the best retirement possible? If so, you are not alone. There are so many things that go into a great retirement but one of the major aspects to a great retirement is a great retirement account. The most popular retirement accounts to help you create that dream retirement are an IRA and 401k.These retirement accounts are widely used and very popular. These types of accounts offer many different possibilities and many different investment options. The issue with these accounts isn't necessarily the accounts themselves but custodians (fidelity, charles schwab, td ameritrade are examples of a custodian) who are selling these accounts. The issue with most custodians is that they do not allow you to use the full potential for your IRA/401k. What are they actually not allowing you to do? They don't allow you to use your IRA or 401k as a self directed IRA or self directed 401k. To put it simply, they are not allowing you to invest in everything you could be investing in.
Most custodians only allow for what most call typical investments (stocks, bonds, etc.) but they do not allow for the non-traditional investments (real estate, gold, private placements, etc.) inside of an IRA or 401k. Why do they do this? There are plenty of reasons why they may not allow for these types of investments but some of the most common reasons are because they either only allow investments that they know and specialize in and or because they simply make much more money by pushing other investments that they control.
What types of self directed retirement accounts are available? The same types of retirement accounts that are available for regular IRAs and 401ks are available as self directed IRAs and self directed 401ks.
Self Directed Retirement Accounts For Individuals
The most common types of retirement accounts available to individuals looking to invest in real estate, gold or any other non-traditional investment are the following:
Self Directed Retirement Accounts for Small Business
Self directed retirement accounts are also available to small businesses looking to invest in non traditional investments such as real estate, gold, private placements and more.
For the majority of you, you'll be trying to decide between a traditional or roth IRA. If you already know the ins and outs of these accounts then you don't have tow worry because they are the exact same rules if you are trying to invest using a self directed IRA. The main thing to remember is that in order for you to invest in things like real estate with your IRA you need to have a custodian that will allow you to invest in these types of investments. These types of investments are allowed in your IRA you just have to find great custodians that don't just push their investments that make them money.
If you are still curious about the types of investments that are allowed in an IRA or how to start investing with your IRA into non-traditional investments contact us today.
Author: Nick Barker