Self Directed IRA Checkbook vs. Custodial IRA

Self Directed IRA Checkbook

Self Directed IRA Checkbook

A Self Directed IRA Checkbook account is an invaluable tool for a savvy investor. There are many reasons for it, starting with the freedom to choose, expedience of transactions, lower costs, or limited liability, a plethora of benefits makes this type of account very desirable.

Freedom to Choose with a Self Directed IRA Checkbook Account

The idea of a custodial IRA can be very frustrating because you must seek approval for every investment you make. You must submit a formal request along with appropriate paperwork to actually invest in anything. With a Self Directed IRA Checkbook account, you will be able to choose any investment you want without having to submit a formal request. The process for a Self Directed IRA Checkbook account is as simple as filling out the proper paperwork to make the investment. This saves a lot of time when processing a transaction. You will not have to wait for a request to be reviewed.

The time it takes for an investment to be approved by a custodian can leave investors very frustrated. It can take weeks or even months to get approval, and by that time, the investment might not be there or worth the effort. Furthermore, if you use a self-directed account, you would not have to justify an investment with your money to anyone but yourself. Of course, you need to do your research on the investment thoroughly, but having access to your own IRA account will allow you to access money for time-sensitive opportunities. So if an investment opportunity presents itself, you will be able to take advantage of that opportunity because you can allocate the funds needed for that opportunity at any time.

The Costs are Significantly Lower

For any type of custodial IRA account, there is usually a fee for the review of the investment as well as a fee for the actual transfer of the money. This can have a significant impact on your profit line, especially if you’re a regular investor. The costs can add up quickly. Controlling your own account means you no longer have to pay those fees. That money can be set aside for further investments.

The Importance of Limited Liability

Limited Liability limits how much a company or account will owe, but separates the LLC from the owner so the owner is protected. The benefit of limited liability is simple. Any debt incurred by the company (or in this case the account) is completely separate from that of the investor or owner of the account. That means all other assets outside this particular account are protected by law. That gives you, even, more freedom to pursue the types of investments you think will benefit you the most.