The Four Stages of an IRA

There are generally four stages to an IRA. The “self-directed” IRA, the “regular” IRA, the self-directed IRA LLC, and self-directed IRA LLC are all available. Make sure that you choose the right one to protect your investments. You can see gold eagle ira for more information.

It can become confusing for people to understand what something is. How many times is this something you have experienced? Let me now go over the four stages involved in an IRA.

Stage 1 – Regular IRA Everyone knows what the traditional IRA looks like. It is the account in which most of us keep our money. We call Merrill Lynch (or Charles Schwab) and give our money. With an IRA, they will make the investment choices. As they manage your funds, they will charge you a fee. It could be commission-based (or fee-based) depending on who you chose.

Stage 2 – “self-directed” IRAStage 2 takes this a little further. Fidelity Charles Schwab, Merrill Lynch, and Merrill Lynch allow you to manage your money. They will give you a “self managed” IRA. But, you can only put money into their products. They can offer mutual funds, bonds and stocks. They may offer stock in Microsoft, GM, Starbucks or other companies, but you can choose which stock they recommend. It is called a self directed IRA.

You can ask your custodian if there is a self-directed IRA that you can invest in property and other assets. This will allow you to verify that you do have one. If they answer “no”, you cannot purchase a house with your IRA, it is not a real self-directed IRA.

This is where traditional investments become non-traditional. Traditional investments are usually stocks, bonds, and mutual fund, which you can get from all the larger custodians. The non-traditional investment options include real estate and energy as well as tax liens.

Stage 3 – The Self Directed IRA. With the self directed IRA, you can now invest your IRA funds into non-traditional assets. Your funds are held by the custodian who manages your non-traditional IRA. They charge different types fees to make their money. These fees could include transaction fees, maintenance fees, and asset fees. Each custodian will be different so make sure to compare a few.