Checkbook versus full custodian SDIRA?

[Don Hines]

I am about to take the plunge with the my next step in investing using SDIRA. I thought I knew best and have been planning on checkbook. Last night we had a presentation at our club and the presenter discouraged that. But, still the greatest threat I see is self discipline while using these funds.

I plan to use either the 401 or a simple SD Roth. I only have 1 year until I am 59 1/2 and feel that even if I do something to get whacked it will only be for the amount of my discretion and I can be very cautious the first year  (not saying I plan on breaking any rules).

Are there any other advantages towards one or the other?

thanks

Don

[Phil G.]

I think what your investment objects should be taken into account as well. If you're planning on buying a note every now and then, then having a custodian transact is probably perfectly acceptable way to go and it will eliminate some formation expense in setting up the IRA LLC and paperwork/bookkeeping on your end. At the other end of the spectrum, if you're planning on flipping houses, working directly with a custodian will be too unwieldy.

If you go with a 401(k), then the things change a bit.  There are no custodians required for a 401(k) and the question is whether you use some sort of an administrator (purely optional).