The Self-Directed IRA: Why To Invest Your IRA Beyond Stocks, Bond & Mutual Funds
Putting some of your savings into an IRA is a real no-brainer. So much so that, according to the latest figures, the average IRA account today contains well over $25,000.
But no matter which kind of IRA you have — traditional, simple, SEP, Roth, (not to mention 401K or Keogh plans), chances are your money’s invested entirely in market-oriented holdings stocks, bonds, and mutual funds.
The reason for this is simple; almost all IRA plans share one common attribute –: they’re administered by someone else. Employer-sponsored plans are run by a company-designated custodian, and normally offer a limited choice of places for you to invest an assortment of mutual funds, for example.
Even a privately-held IRA will usually be administered by your broker, banker, or financial advisor so it’s no surprise that the investment options available will be the ones they’re most familiar with (and can most easily earn commissions on!).
But in order to derive maximum benefit from their tax-deferred status, your retirement savings have to be...