Financial Self Directed IRA
Compared to a traditionally custodied IRA, a self-directed IRA may seem like an entirely different animal. While they are still bound by the same federal laws, the self-directed IRA is not subject to the restrictive plan documents enforced by most traditional IRA custodians. The owner of a self-directed IRA is free to invest as he or she sees favorable (in accordance with the law) without having to pay a never-ending stream of fees.
Some companies offering self-directed IRAs do not offer their clients absolute checkbook control (which is required for a truly self-directed IRA). Some of those companies also have their own never-ending streams of fees. In order for an IRA to be truly self-directed, the owner must have checkbook control over it and must not be charged a fee every time the IRA takes an action related to an investment.
NAFEP is a group of financial professionals with backgrounds in tax law, real estate, and retirement planning that will act as advisors to those seeking freedom within their IRAs. In keeping with their advisory status, NAFEP does not custody IRAs, nor do they charge exorbitant fees. They work with Trust Administration Services to offer clients a custodian but they do not require IRAs to be custodied there.
Who Should Open a Self-Directed IRA?
Any investor who understands how to make money with money (and who wants to be left alone to do so) should have a self-directed IRA. Investors with some experience and a respectable nest egg should also consider opening a self-directed IRA so that their nest egg can truly grow. Novice investors should probably gain a little more experience and learn how to build wealth before taking the reins of their retirement accounts.
Written By Scott Janko, The National Association of Financial and Estate Planning (NAFEP)
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