By J.P. Dahdah, Founder & CEO of Vantage
A Self-Directed IRA is an excellent investment account to open, especially if you have an entrepreneurial approach to investing. With a Self-Directed IRA, you can invest in more than just stocks and bonds. Using your Self-Directed IRA, you can invest in real estate properties, private companies, and even precious metals like gold and platinum.
Here are three things to know when looking to open a Self-Directed IRA.
1. Find the right financial institution. While banks and other financial institutions offer multiple investment options and IRA accounts, not every one of these institutions provides a genuinely Self-Directed IRA account. Also, ensure that you have the flexibility within your Self-Directed IRA to invest in both real estate and private companies should you feel the need to.
2. Understand basic rules and regulations. While you can invest in real estate, precious metals and even look into private lending, there are strict rules on who or what you can invest in. You cannot allocate funds from your Self-Directed IRA to invest in any company you control or any company where a family member or acting investor has over 50 percent control. Follow these rules and guidelines to keep your investment tax and penalty-free.
3. Open your account and fund. When you have finally set up your Self-Directed IRA account to fit your needs, you can set up your contributions and begin looking for investments. Once you feel you have found an investment that suits your needs, you can contact the administrator of your Self-Directed IRA and provide them with instructions for how to invest the funds you have placed in your account.
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or ClientService@VantageIRAs.com.