Dramatically Increase Your Retirement Savings Investment Options With a Self-Directed IRA

Estimated reading time: 2 minutes(Last Updated On: November 30, 2018)

Most 401k plans and traditional IRAs limit your ability to invest to just a few investment products. Financial institutions aren’t generally equipped to manage the same type of investments that you can capitalize on with a self directed IRA. In fact, you can dramatically increase your retirement savings by converting a portion of your existing retirement savings into investment in a self-directed IRA.

What Is A Self-Directed IRA?

It sounds a bit complicated, right? Actually, a traditional or Roth IRA can be converted into a self directed account by simply talking to your financial institution. The primary difference between a self directed IRA and a traditional IRA is that it is “self-directed.” This means you are in control. You make the investment decisions. You are the person who manages the account. And those investment options can include real estate, loans or notes, precious metals, private placements, oil & gas, and a whole lot more.

Why Is It A Good Choice?

A self-directed IRA, when opened with a suitable financial institution, such as Quest Trust Company, provides you with an abundance of investment opportunities. The investment box is larger than you think! You can invest in the same traditional opportunities like stocks, bonds, and mutual funds. You can also invest in other potentially lucrative opportunities like private businesses and private stock, real estate, and even mortgages and loans. As long as you follow a few basic rules and guidelines, you can invest in just about anything. (There are a few exceptions including life insurance and collectibles like antiques and coins.)

You can create multiple streams of passive income using your self-directed IRA funds to generate consistent earnings into your IRA account. For example, you can buy a few rental homes, rent them out to individuals and the profits fund your retirement savings. You can also buy farm equipment and lease it to farmers. The rent goes into your self-directed IRA. There are so many opportunities to boost your portfolio and your savings.

How Does It Work?

The IRS requires that you have a custodian or facilitator set up the IRA. The custodian manages the paperwork and transactions for you. They charge fees based on the paperwork and time. They may also charge fees based on the value of your account.

How Do I Get Started?

You can start by investigating what your current financial institutions offer. See if they offer custodial accounts that meet your investment needs. There are a number of reputable companies that can facilitate the process. Quest Trust Company can offer a variety of options that are perfect for you. Contact Quest Trust Company to open an account today.