Self-Directed IRA vs Traditional IRA

Individual retirement accounts (IRA) are savings accounts set up with restrictions for retirement. Funds are deposited by the individual and/or possibly the employer. The funds are then invested by the financial institution into different investment opportunities, and a portion of the yielded profit is deposited back into the IRA. With Regular IRAs, the funds are overseen by a brokerage house who invests them while managing the account.

With a Self-Directed IRA, a custodian manages the investments and thus has much more flexibility with investment choices. While traditional and Roth IRA investors are generally restricted to stocks, bonds, mutual funds, CDs, etc., Self-Directed IRAs have many possible investment choices. Self-Directed IRAs may also have less fees as the investor takes more control over the investments.

A Self-Directed IRA can be more difficult to set up than a regular IRA, but many people find that it is well worth it.

Call us today to learn what your options are for setting up a Self-Directed IRA.

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