Self Directed IRA

The Self Directed IRA Guides You to retirement planning

Rolling over your traditional IRA to a self directed IRA is one of the best decisions you’ll ever make. A self-directed IRA compared to a traditional IRA will give you freedom. The freedom to choose among many different investment options as long as it does not violate the rules and regulations on IRA set by the IRS. With a self-directed IRA, the custodian’s role becomes limited and responsibility greatly lies on the account holder. It would be wise to choose a self-directed IRA custodian like Asset Exchange Strategies (AES) that with its limited role, gives you the best value for the fees you pay.

Self Directed IRA and moral hazard?

From the movie Wall Street Money Never Sleeps, “Moral hazard is when somebody takes your money and is not responsible for it.” Moral hazard could also be defined as the change in behavior of an individual, usually taking more risks because he is insulated from the risk or simply because he will not be the one incurring the losses if ever the investment turns out bad. With a traditional IRA, yes you still are the one who makes the final decision, however your options are limited by your custodian. Usually your options are stocks, bonds, and mutual funds which are considered more risky investments when there is a wide universe of other investments not prohibited by the IRS, which are less risky and still with the potential of securing your future and fulfilling your retirement dreams.

Does a Self Directed IRA eliminate moral hazard?

When investing with your IRA, you should take more part in it and options should not be limited, it is your future at stake, it is your hard-earned money at risk. You should roll over to a self-directed IRA to eliminate conflict of interest and make sure that your objectives are aligned with that of your self-directed IRA. With a traditional IRA, your investment options are limited usually because your custodian earns a commission or receives other arrangements from these investment choices. With a self-directed IRA, you are in the driver’s seat; you are in control because it is your future and hard-earned money at risk. You will always make sure that the decisions you make is for the greatest benefit of your IRA and that you will always exercise diligence and care in your investments.

At Asset exchange securities we provide self-directed IRA plans, custodial services and a lot more you will need for your IRA. Feel free to visit our Self Directed IRA Solutions for more information.