How is a Self-Directed IRA with an independent administrator different from the one I have with a traditional administrator?
IRAs held by your bank are normally directed by the bank into its mutual funds or CDs and provide minimal risk and minimal return. IRAs held by your stock brokerage company are typically directed into mutual funds and stock portfolios that are sold by that brokerage, and you are limited to those products offered by that particular brokerage. IRAs with an independent administrator allow you to self-direct your money to any investment allowed by law. Not only are you allowed to invest in all of the products offered by the traditional administrator, you are now allowed to invest in leveraged or unleveraged real estate, trust deeds, unsecured notes, improved or unimproved real estate limited partnerships (public and private) and more.
Related Questions
- How is a Self-Directed IRA with an independent custodian different from the one I have with a traditional custodian or administrator?
- How is a Self-Directed IRA with an independent administrator different from the one I have with a traditional administrator?
- Is a Self-Directed IRA any different than a regular IRA?
