| That free and easy setup self directed IRA might | | | | initial investment. So, after two years, he |
| not be a good choice. I looked at the | | | | doubled his initial investment and the account will |
| company’s offering that deal. The additional | | | | continue to grow in this way for as long as the |
| fees that they charge are numerous and the | | | | instruments hold up. With proper maintenance, |
| services they offer are limited. Remember to | | | | they could last for a hundred years or more. |
| always shop around before you make a final | | | | With one of the free and easy setup self directed |
| decision. | | | | IRA accounts, he could have never made that |
| A self-directed account is a good idea, because, | | | | type of investment, because it’s not allowed |
| generally speaking, you have more options, but | | | | by the custodian. Even though, it is allowed |
| the company’s that are offering free set up | | | | under the tax law. But, there is one investment |
| are brokerages. Maybe you only want to invest | | | | type that anyone can make and the profits can |
| in stocks, bonds and money market funds, but | | | | be very high. |
| they are charging high fees for each transaction. | | | | Holding real estate in a retirement account is |
| A better choice is a company that charges a | | | | allowed and some advisors encourage it. Real |
| reasonable set-up fee and an annual fee, but no | | | | estate is typically not affected by the volatility of |
| transaction fees. Of course, you’ll always | | | | the stock market. |
| have to pay a fee for trading stocks or foreign | | | | You can find an easy setup self directed IRA |
| currencies online, but as long as you stick with | | | | custodian that allows real estate transactions, but |
| standard stock market investments, some | | | | set up is not “free”. It costs about |
| companies do not charge an extra fee. | | | | $50. But, custodians that charge for setting up |
| Instead of a free and easy setup self directed | | | | the account may not charge transaction fees or |
| IRA, you may want to consider a little more | | | | percentages on un-invested cash balances. |
| diversification. There are a number of allowed | | | | That’s good, because you need cash balances |
| investment types that are not related to the | | | | to invest in real estate. |
| stock or money markets. | | | | All of the costs, including the purchase price, must |
| Some of them can yield very high returns. | | | | come from the account. All rental income or |
| Others are yield less, but you have to go with the | | | | other profits must be returned to it. There are |
| investment types that you understand. | | | | certain prohibited transactions and rules you need |
| For example, one investor that I know of is a | | | | to learn before you get started, but the real |
| music teacher. His students and others were | | | | estate market can help you secure your future |
| interested in renting musical instruments. He | | | | faster than you ever dreamed possible. |
| used funds from his self-directed account to buy | | | | Choose the right easy setup self directed IRA |
| a number of instruments and began renting them | | | | and look for some good advisors. Help is |
| out. | | | | available, if you know where to look. |
| In less than a year, the rental income paid for the | | | | |