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Self Directed Investing

Self Directed Accounts

Self Directed IRAs- This kind of IRA can invest in more than the stocks, bonds, and mutual funds that a regular IRA can.  Self Directed IRAs can invest in anything that is not a prohibited asset type- namely life insurance, collectibles, gems, stamps, coins, alcoholic beverages, and tangible personal property.  It is common for Self Directed IRAs to invest in real estate, notes, private

placements, and tax lien certificates.


Self Directed IRAs are often set up with a Limited Liability Company structure to avoid holding fees.  The IRA buys the LLC, and then the LLC buys equities.  The advantage of an IRA LLC is that the owner does not have to pay holding fees for each additional equity he or she buys- only for the LLC.  High net worth individuals with Self Directed IRAs can invest in hedge funds and private equity.


Self Directed IRAs/IRA LLCs can also be set up as a Roth Self Directed IRA, where after tax money is put in. 


Self Directed 401(k)s- These are employer sponsored plans that allow the owner to invest in anything that is not a prohibited asset.  These can also be set up as Self Directed Roth 401(k)s. 


Solo 401(k)s- Solo 401(k)s allow self employed individuals to contribute $19,000 (as the employee contribution) plus an additional $35,000 (as the employer contribution) for a total of $37,000 per year.  These can contain Roth "sub-accounts" where after-tax money is contributed.

If you have any questions or would like to learn more about self directed investing, please contact us.

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