With Self-Directed IRAs you are in the driver's seat. You choose how your savings is invested - not your employer's brokerage firm or some unknown money manager. If you are the type of person who likes to research options and take control of your own future, then self-directed IRAs could provide more flexibility, by providing the ability to directly choose the investments that make sense to you.
Self-directed IRAs can offer a number of alternative investments, which are not normally allowed with regular IRA accounts. Regardless of whether you have a traditional or a Roth IRA, self-directed could open up new opportunities like real estate investments. Opportunities to expand into entire new asset classes that may have better returns and greater stability.
A good retirement investment strategy has the dual goals of keeping your savings safe while helping to grow your nest egg over time. That means seeking investments that have a track record of stability, while also providing returns that can help move you closer to retirement. A self-directed IRA may open new doors of opportunity that can help your better achieve your goals.
What Are Self-Directed IRAs?
A Self-Directed Individual Retirement Account is a type of individual retirement account (IRA) that allows the owner to make investments that are normally prohibited through regular IRAs. Those investments can include things like precious metals, foreign currencies, private loans, mortgages, and real estate. The account is administered by a Self-Directed IRA custodian, but its investments are directly managed by you.
Self-Directed IRA Custodians
A Self-Directed Individual Retirement Account is a type of individual retirement account (IRA) that allows the owner to make investments that are normally prohibited through regular IRAs. Those investments can include things like precious metals, private businesses, mortgages, and and real estate. The account is administered by a custodian or trustee, but its investments are directly managed by you.
Opening a Self-Directed IRA Account
HousingCrowdfund does not presently offer Self-Directed IRA custodian services, but there are many options available. Companies that provide custodian services can differ in the types of investments they'll agree to handle. To invest your Self-Directed IRA funds in HousingCrowdfund opportunities, you will need to find a custodian that works with the type of real estate investments we offer. Check with your present financial advisor for guidance.
Know the Risks
The U.S. Securities and Exchange Commission (SEC) has issued alerts to make investors aware of the risks involved in Self-Directed IRAs. One such alert warns, "Self-directed IRAs allow investment in a broader - and potentially riskier - portfolio of assets than other types of IRAs. While a broader set of investment options may have appeal, investors should be mindful that investments in self-directed IRAs raise risks including fraudulent schemes, high fees, and volatile performance." - SEC SDIRA Alert