New information regarding IRAs has been published per the Secure Act 2.0, signed into law on December 29th, 2022. Please click here to access and download.

Self-directed IRAs and Financial Planners

Published on November 13, 2018

If you’re a financial planner with financially savvy clients who wish to include alternative assets in a retirement plan, you can play an important role in guiding your clients as they explore the various nontraditional investments allowed within a self-directed IRA.

In fact, you can develop a more collaborative, rewarding relationship as your clients develop  more diverse retirement portfolios, and you work together to achieve their retirement goals.

As you may know, self-directed IRAs have the same tax advantages as regular IRAs but allow for a more diverse array of investment types—the kinds of assets you may also be investing in outside of your own existing retirement plan. Although the IRA will be held and administered by a custodian/administrator such as Next Generation, and the account holder makes all his or her own investment decisions, many individuals still turn to their trusted advisors for guidance.

With the exception of collectibles and life insurance as exclusions, there are several types of non-publicly traded asses allowed in self-directed retirement plans. Although financial planners may know the world of stocks, bonds, and mutual funds very well, independent advisors may also consider real estate, precious metals, secured and unsecured loans, private equity, and notes as ways to grow retirement wealth.

Since Next Generation is not a fiduciary, and therefore does not provide advice or sell any products, we complement advisors and financial planners by providing the education and resources their clients need to self-direct their investments in non-traditional assets. By guiding our clients about self-direction, they can develop a retirement portfolio that reflects a diverse range of alternative assets beyond traditional stocks and bonds.

Many types of retirement plans and other savings/investment vehicles may be self-directed: Traditional and Roth IRAs, SIMPLE IRAs, SEP IRAs, 401(k) plans, Health Savings Accounts (HSAs), and Coverdell Education Savings Accounts (ESAs).

If you’re a financial planner who has clients asking about self-directed IRAs, read more on our web: https://www.nextgenerationtrust.com/for-financial-planners/. If you’re thinking of self-directing your own retirement plan, our starter kits will walk you through the steps to open and fund your self-directed IRA. Have a question? Next Generation’s team can be contacted via email at NewAccounts@NextGenerationTrust.com or call 1.888.857.8058.

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