What is a Self-Directed Custodian?
A custodian is required by the IRS to “hold” your retirement account. A self-directed custodian allows you to fully direct the investments of your IRA that they are “holding” for you (401(k)’s are different, and don’t use custodians). Many custodians claim that they allow you to self-direct your IRA investments but then only let you invest in publicly traded assets (like stocks on E*Trade). A truly self-directed IRA allows you to make the decisions without restriction. It is important to have quality assistance (like CompleteIRA) to help stay in compliance.
