The nice thing about Self Directed IRAs is that you can buy almost any type of asset.  Most Self Directed Administrators (the ones that I know)  specialize in Nontraditional Assets (Real Estate, Notes, LLC and other private investments).  For the first time, we have seen a unique trend.  In the last month, we have had an influx of client leave their money managers and move the stock and bond investments to a Self-Directed Account.  With a self directed retirement account you have complete control.

Suprisingly the reasoning was all the same, they were two fold, first of all with the market at record lows and many losing money, most investors believe that at these price, they can make as good decisions as their money managers and buy their own stocks (and to be honest, they dont have to pay the 1% fee to the broker) Second, a lot of Self Directed Investors are control freaks, and they all want to consolidate and hold their money in one retirement account.

At Entrust we hold our brokerage accounts typically in this manner, Entrust as Administrator will open a discount brokerage account for the client (clients choice).  We will move the client cash in to the account as directed, and then give the client full trading authority.  The client can buy and trade online with their account.  If the client has stocks or mutual funds that they currently own do not want to sell we, there are certain discount brokers that will allow us to transfer securities inkind, so the client can keep the same lot.

If you would like more information on how to open a brokerage account in a Self Directred IRA, please feel free call me at 239-333-1031 or email me at owens@entrustfreedom.com.  Have a great day.

Dave Owens, CPA, CES is the managing member of Entrust Freedom.