How Does Self Directed IRA Work?
In a self directed individual retirement account, the assets are maintained by the authorized custodian. This trustee also performs all transactions and maintains the records that are related. The trustee also files the IRA reports, assists the clients to understand the rules and regulations and issues the client statements. He also performs all related administrative duties on behalf of the owner of the account. This is done for the duration of that account. The investment is made according to the wisdom of the trustee. The investment can be made in all permitted assets. Thus, the possibilities of investing are substantial, including investing in real estate. Other permitted investment types in self directed IRA include mortgages, stocks, partnerships, franchises and private equities. The possibility of investing in such varied options allows the account owner to diversify the IRA portfolio.
