The Advantages of Converting One or More of Your Current Retirement Accounts into a Self-Directed IRA

Many people are unhappy with the performance of their IRA. Limited in their investment opportunities, they often end up spending more in fees than they earn. Their savings is stagnant at best. It’s no way to save for retirement. If you’re tired of watching your retirement savings’ lackluster performance then you may be interested in transferring some of it into a self-directed IRA. Quest Trust Company, Inc. can provide you with the tools to take control of your own retirement investments and make sure your finances are performing the way they should.

What Is A Self-Directed IRA?

A self-directed IRA is an IRA account that you direct. This means you choose what you invest in. Your custodian does the legwork, you make the decisions. We have experience providing advice for a wide range of non-traditional investments, and can provide you with top-notch administrative support and education to help you make the right decision for your finances.

Self-directed IRAs provide you with a greater number of investment opportunities. You can invest in real estate, mortgages and loans, and even private stock. There are a few limitations, of course. You can’t invest in life insurance, collectibles, or use the money to benefit a family member.

The Three Primary Advantages of Transferring One or More of Your Current Retirement Accounts into a Self-Directed IRA

#1 The Potential To Make More Money

Why sit back and hope that your mutual funds grow enough so that you can retire comfortably? Self-directed IRAs offer you the potential to invest in potentially more lucrative markets and opportunities. For example, you can purchase an apartment complex and fund your retirement with the rental profits. You can invest in private business or offer loans or mortgages.

#2 More Control Over Your Money

Instead of paying someone to manage your account for you, with a self-directed IRA you are in charge of your investments. In fact, many custodians are merely passive custodians. They don’t promote any investment products nor do they offer investment advice. They merely manage the necessary transactions for you.

#3 Wider Investment Opportunities and Diversification

As previously mentioned, self-directed IRAs open up a whole world of investment options. This simple fact helps you create a more diverse portfolio. Diversification reduces risk to your overall portfolio. Potential investment opportunities include but are not limited to:

  • Real estate
  • Tax liens
  • Mortgages or Loans
  • Businesses
  • Private stock
  • Precious Metals
  • Oil & Gas
  • Live Stock – Cattle & Horses

Finally, converting an account to a self-directed IRA is easy. In fact, your current financial institution likely offers self-directed IRA accounts.

Some Guidelines to Consider

  • Diversification – How much of your existing investments should you use to open a self-directed IRA? Experts suggest between 10% and 20% of your traditional IRA or 401k savings can be rolled over to open your self-directed account. The choice is up to you and you may want to talk to a financial advisor.
  • Make sure you’re comfortable with your investments and any potential risk – With a self-directed IRA, you’re directing the investments. You’re in the driver’s seat. We can give you the tools and knowledge to succeed, but you are ultimately calling the shots for yourself. It’s important to be comfortable investing and to know what is and isn’t allowed.

Self-directed IRAs provide you with the potential to save more for retirement. It gives you more control over your assets and investments. And finally, it’s easy to get started. At Quest Trust Company, Inc., we will work closely with you to put the control of your financial future squarely back in your hands.