Unlocking the Power of Self-Directed IRAs: A Guide to Choosing Your Own Investments

Published on October 19, 2023

Do you have a self-directed IRA account? Did you know that with it comes the power to choose your own investments? What does it all mean and what’s the best way to navigate it? Jack Malpass, Business Development Specialist at Next Generation Trust Company, recently had the opportunity to discuss just that on Naked Notes, a podcast by The Note Assistance Program focused on investing in the secondary mortgage market.

A self-directed individual retirement account (SDIRA) is a type of retirement account that allows you to invest in a wider range of assets compared to a conventional IRA, where the account custodian usually limits you to approved asset types. Put in simple terms, an SDIRA empowers you to make investment decisions on your own terms. This allows you to invest in your area of expertise, while diversifying your retirement portfolio and hedging against stock market volatility. SDIRAs are beneficial for investors at any age – if you have qualified retirement income you can set up an account and start earning passive income now.

Some examples of investments that can be held in a self-directed IRA include:

• Turnkey real estate investments such as funds, syndications, and real estate investment trusts (REITs)
• Cryptocurrency
• Private equity
• Precious metals
• Royalties of various kinds
• Peer-to-peer private lending (unsecured or secured loans)
• Private notes

Just like any financial decision, however, self-directed investing through alternative assets requires upfront research and due diligence. Selecting the right SDIRA custodian is critical. A reputable SDIRA firm, like Next Generation Trust Company, can support you in your self-directed investment journey by providing thorough record-keeping, maintaining mandatory reporting, and handling transaction support. With a variety of account options and a dedication to white glove customer service, we can ensure you have the tools and support necessary to control your financial future.

You can learn more about SDIRAs by listening to Jack’s complete interview with Naked Notes here. If you’re interested in exploring the world of self-directed retirement planning, Next Generation Trust Company is here to help. Please contact us today to get started.