What is meant by a self-directed IRA?
A self-directed IRA allows complete diversification, from “traditional” investments such as stocks, bonds, and mutual funds to “non-traditional” investments, in assets such as real estate, mortgages/deeds of trust, tax liens, mobile homes and other private placements and limited partnership interests. A truly self-directed IRA will enable you to use your investment knowledge and expertise to prepare for your retirement. While some custodians claim to allow for self direction, most only allow investments in their approved list of stock, bonds and/or mutual funds, or only make available proprietary investments such as CDs.
