If you’re like me, you hate the thought of your hard earned money sitting idly or under performing in a conventional self-directed IRA. There are so many secure (not to mention lucrative) alternative investments available which can add much needed boost to provide a comfortable little nest egg for your retirement.
Well there’s good news for you. The trick is to get educated about the structure of a “true” self directed IRA and how to make it work harder for you. Your present financial advisor is probably giving you the best advice he can, subject to the limitations placed upon him by his company. You can’t blame them for being more concerned about their commissions than your future security. They will do everything in their power to prevent assets “walking out the door”.
As an investor you can choose from two kinds of self-directed IRA structures. The first is the conventional custodial account (the one you were convinced into picking) this type of account has a custodian who manages your funds either on a commission or managed account fee basis. The second is true self directed IRA – LLC. Self directed IRA’s have been available for over thirty years but structuring this with an LLC is relatively new. Most CPA’s and financial advisors have not caught up with this concept although it has been available for over a decade. This concept offers a lot more flexibility and control to YOU. It allows you to make active or passive investments in tax liens, real estate, mortgage notes and a bunch of other exciting arenas for potentially generating returns that are lucrative as well as dependable.
Self Directed IRA LLC Structure
Every Self Directed IRA has to have a custodian. A traditional custodian will normally have a table of fees. They can charge for each activity, funds in and out and the worst is a fee based upon the assets inside yourself directed IRA. So you take the risks, and they make the money. The IRA LLC does away with that and with long drawn transaction times. It also gives you complete hands-on control. Imagine if you could invest in a retirement center in Des Moines of an Amazonian rainforest franchise. In other words, you have the freedom to pick a non-traditional investment arena if you’re so inclined. That’s what the IRA LLC is offering.
The most attractive feature of the IRA LLC is immediate access to your funds via checkbook control. There are no transaction, asset or holding fees to pay. You are not subject to investment advisors trying to help you invest – think commissions.
As you can see, the self-directed IRA LLC removes the custodian from decision making, saves spurious fees, gives total checkbook control and puts the financial reins back into your hands.
At Self Directed Retirement Plans LLC, we take pleasure knowing we help educate and professionally establish true self directed IRA’s allowing our clients to reach as high as they can dream.