Understanding Self-Directed IRAs
SDIRAs are a powerful tool for diversification, but requires research and understanding of the rules. SDIRAs empower you to build a secure retirement, but with that power comes responsibility. Conductingdue diligenceis an essential step before committing to any investment within a Self-Directed IRA (SDIRA).
What is a Self-Directed IRA?
Self-Directed IRAs (SDIRAs) are retirement accounts that let you choose your investments, offering the same tax perks as traditional IRAs. You manage the retirement investing account by finding, picking, buying, and overseeing its assets.These types of IRAs do not limit you to the stock market. You are free to invest in alternative assets like real estate and private equity.
Self-Directed IRA vs Traditional IRA
Even with the best self-managed IRAs at big financial institutions (Charles Schwab, Fidelity, TD Ameritrade, Wells Fargo, etc.), your IRA investments are limited to traditional assets like stocks, bonds, and mutual funds.
While a Fidelity self-directed IRA lets you manage your account, it restricts investments to these categories, excluding true alternative assets like real estate or private equity.
