A self-directed IRA (SDIRA) is an individual retirement account which allows alternative investments for retirement savings. Alternative asset classes such as precious metals, real estate, and private lending are normally prohibited from regular IRAs, but are possible with a SDIRA. The account is administered by a custodian and is directly managed by the account holder. Below, we explore the benefits of rolling your assets into a SDIRA.
Simple Set Up
The concept of setting up a self-directed retirement account can be daunting, but it can be a quick and straightforward process when you understand the two main steps. First, you must create an account with a SDIRA custodian. Many times, your financial advisor can help point you in the right direction depending on what your needs are. Second, funds will need to be transferred into the new SDIRA account. The account holder is able to do this by making a direct contribution or by rolling over funds from an existing retirement account. Once the funds are cleared, you are ready to invest funds into the assets of your choice.
Gain More Control
There are numerous investment opportunities that are considered alternative asset classes. By setting up a SDIRA you can control exactly what is being invested and gain an expansive list of both traditional and alternative investment options that are not available in other retirement accounts. This allows for the account holder to invest in what they know and understand instead of tying all their personal savings exclusively to Wall Street.
Expand Investment Opportunity
With a SDIRA, you have more asset classes to choose from, not just mutual funds. This means you can invest in what you feel comfortable in, and by diversifying your portfolio, you can mitigate risk. Since the price of gold generally moves in the opposite direction as paper assets, many investors will roll some or all of their funds from a previous retirement account into a SDIRA in order to safeguard their wealth with these tangible objects that have proven to be more secure.
Sometimes it can be hard to get in touch with an administrator or advisor for a plan that was held with an old employer. By rolling assets into a SDIRA, you can control which financial institutions you work with.
If you need help to kick off your alternative investments with the purchase of gold, silver, platinum, or palladium, Huntington Alternative Wealth can help you set up your SDIRA and answer any questions you may have. Contact us