Are Self-Directed IRA's a good idea?

Posted by Aaron Merriman on Nov 27, 2017 1:25:13 PM

One of my primary responsibilities at LMDG is working with investors and overseeing communications with our current and prospective investors.  We are completely committed to our investors, protecting their capital, and doing what is right for the investor is always our top priority.  Because of this dedication we have extremely high investor retention and I have built some amazing relationships over the years with our investors.

Much of my day is spent educating current or prospective investors on our investment, how it works, how we invest in real estate, and our track record and backgrounds.

I also spend time educating on how someone can invest with us.  There is the option to invest directly with cash or with a Self-Directed IRA.  I wrote previously on “What is a Self-Directed IRA” and also “What are Self-Directed IRA rules”    

It’s important to me to ask a lot of questions and understand someone’s goals and reason for investing with us.  I want to make sure they understand how we invest and how we pay their return.  The topic of Self-Directed IRA’s inevitably comes up and I’ll be asked the question “Are Self-Directed IRA’s a good idea?”

My strong belief is that Self-Directed IRA’s are an amazing investment vehicle and should be considered as part of any well-rounded financial portfolio.  Self-Directed IRA’s give you access to classes of assets that would normally not be accessible for investment under the more traditional IRA vehicles.

 It’s important to realize there are no magic bullets to investment success and it’s important to clearly understand what you are investing in, who is managing the funds, and what is their track record.  A Self-Directed IRA invested in something that performs poorly is no different than a traditional IRA invested in a poorly performing mutual fund or stock.  Conversely, A Self-Directed IRA invested in a high performing investment is also attainable with the additional flexibility of alternative asset investing.

Self-Directed IRA’s are a great option for someone looking to expand their investment portfolio beyond the traditional options of stocks, bonds, and mutual funds but it’s always important to make a fully informed decision and know exactly what you are investing in.

Schedule a call today with LMDG and we can answer any questions about Self-Directed IRA’s or the custodians we work with for our current investors.

Tags: Self-Directed IRA, IRA, retirement, Investing