5 Easy Tips for Self-Directed Beginners
Published on August 23, 2016
You may have read our previous article about Self-Directed IRAs, and now you’re interested in starting one of your own. Self-directing can be easy, but in the beginning it can seem like there’s a lot of information being thrown at you at once. I have compiled a list of 5 tips that can help you navigate through the process of starting your retirement nest egg.
- Choose the Type of IRA
This is one of those things that’s easier said than done. There are actually quite a few different types of IRAs for you to choose from, and that can make the decision a bit overwhelming. Many people stick with a Traditional or a Roth IRA. Both have their advantages and are simple enough to navigate with once you do a bit of research on each.
- Find the Right Administrator for You
There are many self-directed IRA administrators and custodians out there, and we are one of them. You can call us up and ask us questions about our fees, processing time, anything you’d like really. The only way to know if we’re a good fit for you is to get in touch with us!
- Invest in What You Know
Investing in what you are familiar with can ensure that you are comfortable with your decisions. Do you know a lot about race horses? You can invest in that. Are you a precious metals guru? Go for it! Being comfortable in your knowledge of what you’re investing in makes the process easier. The longer you are investing, the more experience you will gain. As you gain that experience, you can become more comfortable in investing in other things to diversify your portfolio.
- Research Your Investment Further
You’ve probably heard this before, but be sure to research investments. As previously stated, investing in what you know can make you more comfortable with investing. With the added knowledge from your research on your investments, you can get an idea of what to expect on your returns.
- Open and Fund Your Account
Congratulations! You have chosen the type of IRA you want, you’ve decided on an administrator that has your best interest at heart, and you’ve even picked your investment. Once you open your account, you’ll need to fund it in order to start your investments. There are a few ways that you can fund your accounts; such as transfers, rollovers, and contributions. If you’re just starting out on your first IRA, it’s likely that you will be funding your account with contributions. You can find a helpful list of contribution limits here.
Next Generation Trust Services is here to help you build your retirement nest egg. For more information please email Info@NextGenerationTrust.com or give us a call at 888.857.8058.