If you are an experienced investor, or interested in entering the alternative investing space, you should know all the options available to you. One that many investors generally are not aware of is the capability of using retirement funds to invest in less traditional alternative investments off Wall Street. Despite it being a legal and decades-old tool, the Self-Directed IRA is an unknown commodity to most Americans.
The ability to pivot off Wall Street with your retirement investing is very appealing for those who feel more confident putting their money into investments they truly understand. Passively investing in alternative assets with your IRA is likely something you never thought was possible, yet it is being done by savvy investors more and more as awareness of Self-Directed IRAs continues to grow.
Using a Self-Directed IRA helps investors utilize their retirement funds for alternative investments. Instead of languishing in a volatile and possibly stagnant traditional account, the investors’ retirement money can be invested into alternative assets that they already understand.
Your ability to invest in nearly anything you want is as easy to do as it is prosperous.
So why haven’t you ever heard of this option before? Traditional brokerage firms like Fidelity, Charles Schwab, and Vanguard generally do not inform investors of this option because it is not something that they themselves offer clients. For this reason, you’ll need to find a Self-Directed IRA Custodian that can accommodate your alternative investments.
A Self-Directed IRA is often the most powerful tool an investor can have. Simply put, it is a tax-advantaged retirement account that doesn’t limit your investment opportunities the same way a traditional brokerage IRA account would. The Self-Directed IRA is held by a custodian, just like any other IRA, except you are free to build your portfolio with investments you have more experience and familiarity with, as opposed to being limited to stocks, bonds, and mutual funds.
The empowerment investors receive by investing with a Self-Directed IRA often leads to better choices, as their confidence in these investments is likely higher. The stock market is often complex and anxiety-inducing for those who aren’t experts. Many find themselves thinking, “I wish I could invest my retirement in something I know well.”
If you are one of these investors, a Self-Directed IRA perfectly suits your needs.
Through a simple process of transferring the IRA funds over from your current custodian or rolling funds over from a previous employer’s 401(k) plan, your Self-Directed IRA will be primed and ready for the exact investment that you are interested in. When you make that decision, the last step is to authorize your custodian to complete the transaction.
The Self-Directed IRA is not just a powerful tool that could help maximize your retirement, but also a tool that can deliver you peace of mind. Don’t settle for uncertainty when thinking about your retirement. Take control of your investments and make money in the best way you know-how with the Self-Directed IRA.