a blog for the brave people facing the Series 65 or Series 66 exam.
Thursday, June 21, 2012
Self-Directed IRAs and 401Ks
Some folks might pretend they know the ins and outs of all available retirement plans, but that is not likely. For example, few people know that within an IRA account, an individual can actually invest in real estate, private placements, notes, and other investment options far outside the typical CDs and mutual funds. Self-directed IRAs allow individuals to invest in the typical securities investments that typical IRAs do but also expand into real estate, or possibly even providing start-up capital to a speculative company. Only certain companies can act as the administrator for the self-directed IRA account, but you can certainly find a few if you google the term "self-directed ira" or "self-directed 401K." I guess if I were impressed with my returns on real estate thus far, I might consider switching my Traditional or my Roth IRA to a self-directed account. But, since I prefer to buy REITS to financing and managing my own properties, I will continue to let my current broker-dealer/custodian hold the assets. But, who knows, some investors may want to explore the opportunity of investing in, for example, real estate or start-up companies. The test might even bring up the expanded investment options allowed in "self-directed IRAs" or "self-directed 401Ks."more help CLICK here