Self directed IRA is a type of individual retirement arrangements in which the owner of retirement account has direct control of his/her account.
It gives owner complete access to non-traditional assets such as limited partnership, commercial paper, notes and real estate.
The common type of self directed IRA is Self directed gold IRA, it holds gold and other precious metal. Other types include;
Self-directed real estate IRA, it deals with holding real estate IRA.
Self-directed offshore IRA, it deals with overseas investment.
Self-directed IRAs have no limitation as opposed to traditional types of investment which are offered by bank establishment or custodians.
Self-directed account gives holder more flexibility on the choice of investment.
Some of the advantages of self-directed account are.
You are more flexible. You can shift from one type of investment to another without being limited by company you invested with.
For example, you can shift from gold IRA to platinum, real estate or offshore investment without suffering limitation of the company you invested with.
This allows to take investment in commodities that will take market, and allows you to fetch profit easily.
It allows you to partner with your family members, friend or colleagues in investing, this may not be possible with other traditional types of investment.
You also need to make some considerations when choosing the type of self-directed gold IRA Company you are investing with. Some of the factors you should take into account are;
You should look at the amount of storage fee offered. Some company will charge some additional fees on the first year of investment, while other companies do not charge additional fees.
Some companies will not only handle gold IRA but will also sell, this makes it easier for you to take investment.
It is good for gold IRA company to offer buyback program, this allows investors to easily liquidize their gold IRA when need arises.
You also need to look at types of investment available.
Choosing wrong company can be very costly. It is very important to invest with a gold IRA company that offers variety of investment choices, for example, real estate IRA, off shore IRA and other precious metal investments.
This allows account holder to swap from one type of investment to another according to market trends and his/her plans.
IRA companies that do not offer different opportunities will limit your plans and you may end up losing a lot of opportunities.
You also need to consider company’s reputation, invest with a reputable company whose credibility has passed test of time.