The Four Stages of an IRA

There are basically four types of IRAs. There are four stages to an IRA. They are the “self directed” IRA. The self directed IRA LLC. You can check to see if you are using the correct one for your investments. Come and visit our website search it on gold etf ira you can learn more.

With so many terms and names being thrown around within the financial community,Guest posting can make it very confusing as to what something actually is. How many times has this happened to you? Let me take you through each stage of an IRA.

Stage 1 – Regular IRAEveryone understands what the traditional IRA means. It is the place where most of our money is kept. We call Merrill Lynch, Charles Schwab, and Fidelity to give them our money. You can make your investment decisions with the IRA. This is because they manage your money and charge you for it. The custodian you choose could charge a fee or a commission.

Stage 2 – “Self directed” IRAStage 2 takes the process a step further. Fidelity and Charles Schwab will still keep your money but Merrill Lynch will let you make the decision. You will be able to set up a “self-directed IRA”. You cannot, however, invest in their products. This can include stocks and bonds as well as mutual funds. You can choose from Microsoft, GM and Starbucks stocks. You can choose the stock that you want to control, and they call it a self-directed IRA.

It is easy to check if your self-directed IRA has been set up. Ask your custodian if real estate or other nontraditional assets are allowed. If they don’t say yes, then your self-directed IRA is not true.

We’re now ready to make the leap from traditional investments into non-traditional ones. Keep in mind that traditional investments typically include mutual funds, stocks, bonds, or bonds. This is what all larger custodians will offer. Real estate, energy, tax lien, and many other non-traditional investments are available.

Stage 3 – Self Directed IRA The non-traditional IRA custodian will keep your funds. They collect different types of fees to make money. These fees may include transaction fees, asset fees, and maintenance charges. Each custodian can be a bit different, so it is worth looking at several to determine which one suits your needs.