Pros and Cons of Self-Directed IRAs

Join Carrie Cook, CEO, and Chris Trembly, Chief Compliance Officer, to discuss the pros and cons of self-directed IRAs! The pros include diversification of assets, control of investments, tax-free or tax-deferred growth, potential for higher ROI, and inherent asset protection. However, there are also cons, such as the need to do thorough due diligence without a built-in advisor, potential tax implications, fees associated with self-directed IRAs, risks and complexities of IRA LLCs, and lack of liquidity.

Takeaways

• Self-directed IRAs offer greater control and diversification of assets.
• Investors must do thorough due diligence and understand potential tax implications.
• Alternative investments in self-directed IRAs have the potential for higher ROI.
• Fees associated with self-directed IRAs may be higher than traditional IRAs.
• Investing through an IRA LLC provides even more control and diversification.
• Investors must be aware of the risks and complexities of IRA LLCs.
• Self-directed IRAs offer inherent asset protection.
• Many alternative investments in self-directed IRAs are not liquid.