My Self Directed IRA Experience

[Will Weider]

I am starting this thread to document my experience with a self-directed IRA

I have an IRA that has been invested in stocks and bonds since I rolled an old 403(b) into this IRA about 10 years ago. It always underperforms the market, primarily due to the investment asset mix that includes long-time dogs such as international investments. Last year was a banner year, I made 5% even though the Dow is up 14.4% YTD.

I can easily get a better return from a rent producing real estate investment. I own a couple of properties and have a niche where I like to invest. So, I am planning to transfer this IRA to self-directed IRA.

[Jack Shea]

A Checkbook control account is essential for an active investor. You only pay one annual fee, about $300 from most custodians. You do not have the cost for checks and the delay of going through the custodian. Better yet, all rents, note payments, flip proceeds, etc. go to your corner bank and not back to the custodian. You can reinvest the funds rapidly. A Checkbook Trust is much less expensive, does not have annual reports, annual fees, not on public records, no registered agent. It costs about $300. The checkbook LLC's cost $1000 or more, plus continuing fees.