Essential InSights

Core Topics for the Everyday Investor

Account Types: Self Directed IRA

Account Types: Self Directed IRA

A IRA without investment limitations

Annual Contribution Max: $6,000 or $7,000 if over 50 years old.

Why we like Self Directed IRA’s:

  • Available to anyone
  • Makes several non marketed assets available to invest (Including, Franchises, Commercial and Residential Properties, Precious Metals, Art and Collectables)
  • Ability to get Fiduciary level investment advice
  • A great vehicle to help find non-correlated assets
  • Some investments, like property, can be levered up

Why we don’t like Traditional IRA’s:

  • Low contribution limits
  • More difficult to open and invest
  • Investments may have less liquidity
  • Requires more support and experience valuing assets
  • Requires more filling and mark-to-market support
  • Can be expensive

A Self-Directed IRA’s basic promise is to provide the ability to shelter taxable capital gains of nonstandard assets. It makes the whole range of investment options available to sophisticated investors and those seeking cash flow and returns without the tax implications. If your investment requirements and your InSight-full® financial plan require this kind of exposure, we help clients hold, value, direct, and monitor these assets

Three major elements that investors should be aware of is, that 1) the illiquidity of assets in the account cannot be controlled in some markets and poses a unique set of liquidity risks, 2) these assets cannot be for personal gain or use and 3) you cannot provide and add value without using plan assets (you must keep personal assets including “sweat equity” separate).

essential insights

Other Related Topics:

Definitions: Fixed Income

Fixed Income (or debt) represents your ownership over the repayment of a debt. Usually considered bonds, they are contracts promising the repayment of loaned money.

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Definitions: Equity

The term Equity represents any ownership rights over an asset’s cash flow generation potential. As an asset class, there is no guarantee of a return

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