Self Directed IRA the Best Tool for Retirement Wealth Accumulation and Preservation

Estimated reading time: 3 minutes(Last Updated On: August 3, 2012)

Are you frustrated with the slow growth of your IRA? There is an option that you may not be familiar with. It’s called a self-directed IRA. This type of IRA offers an abundance of benefits not limited to potentially generating more retirement savings. At Quest Trust Company, Inc., we can provide you with the support and education you need to take control of your retirement finances.

What Is A Self-Directed IRA?

A self-directed IRA is an investment tool that provides you with more investment opportunities than an IRA at a traditional financial institution. It’s called “self-directed” because you are in control – you chose how your money is invested. However, you do need to have a custodian or administrator. Quest Trust Company, Inc. can provide you with administrative support and transaction services to help you manage your self-directed IRA.

As with any IRA, you cannot invest in collectibles, S corporations, or life insurance. You also can’t invest in personal property. You also cannot use the funds to benefit a beneficiary of the account (you or any named beneficiary) or other disqualified person. A disqualified person is someone who is a family member or custodian of the account.

So What Can You Do? Why is A Self-Directed IRA So Great?

Self-directed IRAs put you in the driver’s seat. Instead of your investments being managed by a fund manager or plan manager, you are the boss. You decide what investments to buy and sell, and how to manage your retirement savings. You can open your self-directed IRA quickly and easily. You simply need to decide if you want a custodian to manage the administrative tasks. Either way, you can roll over some of your existing retirement savings to open your self-directed IRA.

How Can It Help You Accumulate Wealth And Preserve Your Savings?

Self-directed IRAs offer you the best of both worlds. You can invest in traditional stocks, bonds and funds. You can also invest in real estate, businesses and even earn income by offering loans or mortgages. A self-directed IRA enables you to diversify like no other type of retirement savings tool.

This diversification helps you preserve your savings. When you’re able to invest in a variety of opportunities, your savings doesn’t suffer a major blow if an aspect of the market struggles. And because you can generate multiple streams of income with your investments, you can literally watch your savings grow.

What Do You Need To Know Before Starting A Self Directed IRA?

It’s important to know that not all self-directed IRAs are created equally. You can probably go right over to your bank and open a self-directed account. However, they will likely have limitations on what products you can invest in. When searching for a custodian or administrator, make sure you’re able to invest in the opportunities you’re interested in. You can invest however you want, as long as you stick to the rules the IRS has set forth. Quest Trust Company, Inc. is here to help you every step of the way as you set up and manage your self-directed IRA account. Our service, support and education guarantee that you will be in total control of your own financial future.