Self Directed IRA: Claiming Control

2007-03-08 10:33:40

( Financial )



INDIVIDUAL RETIREMENT ACCOUNT

IRA is a common financial term which stands for Individual Retirement Account. It is a system of accounts that is designed to address your retirement needs down the line. Usually an IRA is a fund you set aside which can be used to buy stocks, bonds, securities, and other investments that will earn you dividends in the long term.

The primary advantage of opening an IRA is that it has tax benefits that are not available when opening an ordinary savings account. While there are many benefits that can be derived from opening an IRA, the savings alone that you can obtain from the tax discounts is reason enough to avail of one.

The more flexible type of IRA is known as a self directed IRA. A self directed IRA allows for greater financial control on your part. A self directed IRA is opened and managed by a broker instead of a bank or a mutual fund company. Opting for a self directed IRA gives you the sole power to make decisions when it comes to making investment choices, and not be dictated upon or influenced by someone else like.

CUSTODIAL CONTROL

A broker of a self directed IRA is also called a self directed IRA custodian. A custodian is your financial mediator and performs accordingly to the directions that you will be giving him or her.

As self directed IRAs become more and more popular, quite a number of companies have been offering self directed IRA custodian as a service. These companies train these custodians to become experts in retirement investments. So while a custodian may give you advice, he can only act with you full consent and sanction.

After all the years of labor and hard work, everyone deserves a comfortable retirement. And having a self directed IRA is your best shot at it. Just make sure that every step you take is backed by careful deliberation. It is your money on the line, after all.


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