When you think about it, you would really have a lot of options when you go for a self directed IRA more than the other types of investments. Why is that so?
Because of the fact that you can really invest in more asset types than the usual. What does that mean?
Well, with your vanilla IRA, you usually only have access to your usual stocks and bonds.
There is actually little difference between your usual IRA and 401k fund when you think about it – there is just the matter of oversight with these things and you would have little to no control aside from the money that you would choose to invest with these funds.
With self directed IRAs that is not going to be a major problem – you could choose a good custodian who would be on call to inform you of the status of your IRA fund and you would be able to direct him to move money in and out of investments as you wish.
With these funds, you would now have more access to more assets, like options and physical, tangible objects. If you so wish, you could even opt to put your money into self directed IRA real estate.
Of course, with more options you have to have a set of rules and regulations to follow.
If you make sure that all of your investments are above board, like when you pick real estate, you have to pick properties that are sanctioned legal by the ruling bodies, otherwise you would be committing illegal activities with your fund and you would now need to find a lawyer who would be able to defend your case properly.
Avoid that – nip your issues in the bud and keep your investments legal so you will not have any problems. Remember, no one else would have control over these things aside from you.