How Does a Self-Directed IRA Work?

 |  General Self-Directed IRAs
Self-directed IRA

By J.P. Dahdah, Founder & CEO of Vantage

Are you concerned that your IRA may not be enough for a comfortable retirement? Are you tired of a poor rate of return on your IRA portfolio?  Many hard working people like you are starting to take control of their IRA investment dollars by opting for a self-directed IRA. Why?

A self-directed IRA gives you control of your investment dollars by expanding your options beyond Wall Street based investments. With a self-directed IRA, you can invest in “non-traditional” investment opportunities like real estate, precious metals, private companies, private notes, and much more.

How does a self-directed IRA work?

Step One: Select a Qualified Self-directed IRA Administrator – IRS regulations specify that you must direct your investments through the services of a qualified administrator; a retirement plan firm that holds assets and facilitates transactions on your behalf and under your direction. These firms will typically offer a variety of investment choices not available in your brokerage kept IRA account. You still benefit from tax deferrals, but you have many more investment options available to you.

Once you have researched available firms and have made your decision concerning one with whom you feel most comfortable (i.e. Vantage Self-Directed Retirement Plans), the rest becomes relatively easy.

Step Two: Complete the Application Process – Fill out a self-directed IRA application to open your account.

Step Three: Fund Your Account –  You can fund your new self-directed IRA account by designating a specified amount from your existing brokerage IRA or by initiating a rollover of funds from your former employer’s 401(k) plan. There are no tax penalties associated with funding the account.

Step Four: Select the Alternative Investments of Your Choice –  Now you can invest in the assets you choose, whether that be real estate, precious metals, private, lending or any other asset strategy you desire.  That’s it!

So, if you’re looking for investment opportunities beyond stocks, bonds, ETFs, mutual funds, and CDs, contact us today.

For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or