Most of the conventional retirement plans require you to hire a custodian, which could be a financial institution or a trust, to conduct transactions on your behalf.
There are both advantages and disadvantages of this regulation but the question you need to ask yourself is that “is it really worth it to pay someone who has custody
of your hard-earned money?” Yes, if you do not know too much about the current market situation and need someone to make the difficult decisions for you, you are
probably better off with a custodian.
However, if you are confident enough to keep the money in your own pocket and invest where you see fit, then a self-directed IRA is what you are looking for. With a
self-directed IRA, you can invest in practically anything you want, whether it is real estate, precious metal or an LLC, and you can make your transactions whenever
you want to without the need to call anybody for verification.
The importance of such an advantage can be illustrated using an example. Suppose you are about to close a potentially lucrative investment deal but you only have a few
minutes to make your decision before someone else jumps in and grabs it. You are calling your custodian for their nod but he appears to be busy and is not taking your
call. You have no choice but to let go of the deal. Now imagine the same scenario except that you are the owner of a self-directed IRA. With a self-directed IRA, you
are the custodian of your own money and you alone have the power to make the decision. You simply whip out your checkbook, sign the check and the deal is done.
One of the other advantages you get over traditional retirement plans is that with a self-directed IRA, there are no asset-based-holding charges or transaction
charges. Instead, a self-directed IRA charges a fixed annual amount regardless of how many transactions you make or how much money you have in your account.
To learn more information on: 5 Secrets you don’t know about self-directed IRAs, Click Here
"Checkbook Control": Make your own Investment Decisions without a Custodian
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