When in a position to make a difficult decision, we often rely upon others for guidance and direction. In many cases we may ask advice from a family member, friend, or respected professional. Getting outside input helps us to align our thoughts because we have been able to look at the decision from multiple angles.
When it comes to making decisions regarding an IRA, it can be a daunting task to make these types of difficult decisions by yourself. This is not because you are not capable of making these decisions, or not experienced enough, or not smart enough. These decisions can be difficult because you may not have all of the necessary information to allow for a reasoned and informed decision.
When you make a decision regarding establishing a Self-Directed IRA account, you do not have to make this decision by yourself. You should always consult a team of professionals working for your benefit. The team is dedicated to one thing - helping you locate opportunities for competitive economic benefits with respect to your IRA assets.
The first step in the Self-Directed IRA process would be to determine whether you want and need the investment flexibility of a Self-Directed IRA. If you are satisfied investing in traditional investments, you probably do not need a Self-Directed IRA to allow you to invest your assets this way. You can establish the need for a Self-Directed IRA by discussing this option with your tax, legal, and financial advisors.
Should you decide that a Self-Directed IRA account is needed to afford you the opportunity to achieve the financial goals you have for your IRA, you should assemble your Self-Directed Team to help you achieve your goals.
Members of Your Self-Directed Team
- The Investor - That’s You - It is important to remember that it is your money that is being invested. You will be the one who decides to move forward with a specific investment inside your Self-Directed IRA. While you will receive advice from some very qualified professionals, it is ultimately your final decision.
- The Investment Advisor Representative - This is the licensed securities professional who you use to provide you financial guidance who will guide you through the entire Self-Directed IRA process. The Investment Advisor Representative will be your consultant and advisor throughout the entire transaction, working with all parties involved and coordinating the majority of the work that must be done to help you accomplish your goals. Your Investment Advisor Representative should be an expert in Self-Directed IRA accounts and will serve as the "Quarterback" of your Self-Directed IRA transaction. The most important responsibility of your Investment Advisor Representative is to help you make an informed decision that is consistent with your financial objectives.
- The Self-Directed IRA Custodian - This is the firm responsible for the implementation, administration, and reporting of your IRA. Typically the Custodian will establish your account, receive funds, make investments, distribute funds, review proposed investments, report values, provide governmental filings, and perform other services associated with the Self-Directed IRA account.
- The Accountant - Your accountant can provide valuable insights as to the income tax aspects of your Self-Directed IRA. Your accountant can work hand-in-hand with your financial advisor. In many cases the financial advisor will help educate your accountant on Self-Directed IRAs.
- The Attorney - Your attorney can provide valuable recommendations as to the legal aspects of your Self-Directed IRA. Your attorney can work hand-in-hand with your financial advisor and your Custodian. As with your accountant, your financial advisor will typically help to educate your attorney on the specifics about Self-Directed IRAs.
The Team above can collectively help you to make a knowledgeable decision about your Self-Directed IRA. You will not have to act alone in making the best decisions to help you meet your financial goals. |
