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Self-Directed Solutions for Individuals

Are you looking for an alternative to the volatile stock market for retirement planning or other investing purposes? Is there a specific investment type, business or industry that you know and understand? Do you have an IRA, 401(k) or another retirement plan you’d like to take direct control of?

An account allowing self-direction, such as a Self-Directed IRA, may be what you’re searching for!

Depending on your custodian and plan paperwork, you may be able to self-direct your IRA (Traditional, Roth, SEP or SIMPLE), Solo 401(k), Coverdell ESA and potentially even your 401(k) plan. You can also self-direct a joint, trust, business or individual custodial account.

This concept means that you, the investor, are able to “self-direct” your investing, which often leads investors to choose assets not normally offered at traditional financial institutions. You can hold private investments like real estate, precious metals, and private placements alongside traditional investments like stocks, bonds, mutual funds, exchanged traded funds (ETFs) and public real estate investment trusts (REITs).

How is this possible? The reason is simpler than you might think!

The IRS has never published a list of investments that we CAN buy with retirement funds. It has simply listed the items we CANNOT buy:

  • Self-Directed IRA Basicslife insurance policies
  • collectibles, including works of art, gems, rugs, antiques, stamps, alcoholic beverages and certain metals and coins (see IRC 408[m][3] for some exceptions)
  • stock in an S corporation

How does it work?

Via a simple 3-step process, you can be on your way to self-directing your account:

So, with an account like a Self-Directed IRA, you can purchase rental property, loan money to a startup company, participate in marketplace lending or crowdfunding opportunities, structure your account via a single-member LLC and so much more!

The most common investments held in self-directed accounts include

The above is by no means a comprehensive list, as your investment options are nearly endless!

Keep in mind that even though Kingdom Trust’s self-directed solutions for individuals provide enormous flexibility, there are certain rules you must follow when investing using retirement funds. It’s important for you and your team of professionals to understand the tax ramifications of each account type or transaction and follow prohibited transaction rules as you consider any investment.

To get started with self-direction, contact Client Services today! We are happy to help and can walk you through the account opening and transfer processes.