The COVID-19 pandemic is challenging each one of us in different ways— some harder than others.  Many have started working remotely, or wear masks whenever they leave the house.  Many have been laid off, furloughed, or need to take care of a loved one who may have contracted the virus, or maybe became sick themselves.  We have all been affected.

Believe me, after 16 years in the self-directed IRA industry, I’ve heard it all: the good, the bad, and the downright weird of self-directed IRA companies. I often talk to account holders and pick their brain on how they went about finding the right custodian. Usually they have a story about what went wrong and it's exactly why I remain committed to the promise of Self-Directed IRAs (SDIRA). I believe that everyone has the right to make their own investment decisions, and pay affordable rates, while receiving best-in-class service. I also believe passionately in the power of knowledge and making what seems complex simple.

After 16 years in the self-directed IRA industry, I’ve gained insight into some of the major complaints and pain points self-directed IRA investors deal with. As an investor myself, I’m empathetic to these challenges— especially as someone who works behind the scenes to create excellent customer experiences. With my experience working in all aspects of self-directed IRAs and alternative investments, from marketing to business development, I’ve had the opportunity to learn from savvy self-directed IRA investors of all levels. After much research and discussion with our clients as to why they’ve moved their IRA to IRAR Trust, here’s what I’ve found.

You’ve got a lot of freedom with a self-directed IRA, but you do have a few rules you need to follow. Investing in real estate with your self-directed IRA is a lot like investing in real estate outside of your IRA— except the IRS prohibits a few things (per IRC Section 4975). These investment rules are really the biggest differences between IRA investing and the traditional real estate purchase— aside from the incredible tax benefits.

Taking a required minimum distribution (RMD) can be challenging if you’re not sure what you’re doing. There are real tax consequences if you don’t do it right, so smart IRA investors know it’s important to take it seriously. Since self-directed IRAs deal with alternative and sometimes illiquid assets, this can seem complex. But at IRAR, we’ve seen it all— and we’re here to help.

Our team of experienced self-directed IRA experts is here to guide you through the process, answering real RMD questions from real SDIRA investors.

When the IRA was first created, you only had one option— but since 1997, there’s been another choice, one more and more investors are picking every year. The Roth IRA! A favorite of many investors looking to make their retirement dollars go the extra mile— and you can take advantage too, as long as you qualify.

Do you have a Traditional IRA? If so, you’ll have to start taking Required Minimum Distributions (RMDs) eventually. Once you turn 70 ½, you’re required by the IRS to take out (and pay taxes on) a portion of your retirement savings. But for some people who don’t hold any cash in their self-directed retirement account, this causes momentary panic. I don’t have any cash in my self-directed IRA, how do I take my RMD? What do I do!?  

We know you want to help your clients open their self-directed IRAs as quickly and seamlessly as possible. We want that too! Our team is always aiming to make the process as simple as possible for investors and their advisors. The process with IRAR is quick and easy, but there are a few things we see investors miss pretty frequently.

Here’s what to watch for with your clients, so they can start investing ASAP:

If you’re self-employed or a small business owner looking for a way to save for retirement, SEP IRAs are an excellent option to consider. Easy to set up and maintain, SEPs are retirement saving without the hassle —plus the added bonus of much higher contribution limits, so you can save and invest more, faster.

So wait, that’s easier set-up and more savings? If that sounds like your dream IRA, here’s what you need to know:

If you’ve been self-directing your IRA (or thinking about it!), you may have heard how hard it is to work with self-directed custodians— but that’s only true of SOME self-directed custodians. Though some companies are known for overcharging while under-providing (or just being plain hard to get ahold of), we promise that’s not true for every self-directed company.

Don’t let a few bad apples chase you away from a great opportunity to invest. Don’t give up on self-directing your future. Not all custodians are the same, we all do things differently.