What is a Self-Directed IRA?
A self-directed IRA is an Individual Retirement Account (IRA) that you directly control and transfer into the investments of your choosing. This retirement account type allows alternative investments when saving for retirement.
Why Choose This IRA Type?
With self-directed account, you're able to get your money out of the oftentimes unstable stock market, and into investments of your choice. A lot of investors choose to keep their own money in the stock market, but now you don’t have to. You now have options.
How to Set Up an Account?
The first step toward setting up a self-directed IRA, is to open and fund your IRA. You’ll need to submit an application, provide some documentation, and set up a payment method. Next you select your investment and request funds. When the request has been approved, you purchase the investment. After that, you manage the investment, and if you choose, sell the investment.
How Does This Type of IRA Work?
There are two options. With the first, you open up an account, select an investment, and we purchase that investment for you. As per the IRS, any and all profits that are gained through these investments funnel back into your IRA, since your IRA owns the investment. This allows your earnings to grow. This structure gives you control over your investments, but you will be required to work through Accuplan for each transaction.
For the second option, you open an account, and we as the custodian, create a separate LLC that your IRA will invest in. This LLC can have a checking account setup so you can manage the LLC. You will have administrative powers and control over the asset and/or checking account. Any and all profits that are gained through these investments funnel back into your IRA. This account setup is ideal for clients who choose to hold real estate as an investment, and may need to pay bills and expenses related to the property. This way, you pay the bills directly instead of working with a custodian to pay the bills. As the manager of the LLC you can buy and sell those assets at your discretion.