- Buck Masters
Self Directed Retirement Accounts
Self Directed IRA accounts offer a broad variety of investment options. These accounts offer tangible asset investments such as Real Estate, Precious Metals, Cryptocurrency and much more. Forbes magazine recently did a story on this:
Self-Directed IRA: Invest In Alternative Assets For Retirement
In many ways, a self-directed IRA follows the same template as a standard IRA. The annual contribution limit is the same: $6,000 for 2021, or $7,000 for those 50 and over. You can choose to open a self-directed IRA as a traditional IRA or a Roth IRA, with the same pre-tax and post-tax contribution rules.
“What’s different is that the custodian of a self-directed IRA allows you to buy a variety of alternative investments,” says Scott Butler, financial planner at Klauenberg Retirement Solutions.
With regular IRAs, the custodian—usually a bank or a brokerage firm—limits your investment options to approved securities like stocks, bonds, exchange-traded funds (ETFs) and mutual funds.
Different custodians offer self-directed IRAs that can own gold bars, silver ingots or even cryptocurrency like Bitcoin. Certain investors want the tax advantages of an IRA for investments in non-traditional asset classes, for purposes of diversification or potentially more lucrative returns.
It’s important to note that you cannot buy non-traditional assets from a self-directed IRA custodian, which only holds the assets after you’ve purchased them from another broker. This adds an additional level of complexity to setting up a self-directed IRA, and may offer the potential for fraud if you were to purchase alternative assets from untrustworthy dealers.