9 Questions to Ask Before Opening a Self-Directed IRA: Volume 1 | Madison Trust

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SCRIPT
In the first chapter of this video series, you’ll learn some of the questions to ask before opening a Self-Directed IRA.

Do Self-Directed IRAs Allow My Investment of Interest?
With a Self-Directed IRA, you can invest in alternative assets that align with your possible passion and expertise. Common assets are real estate, precious metals, promissory notes, and startups or small businesses. You are prohibited from investing in life insurance, S-corporation stocks, or anything that can constitute as a collectible item.

Do I Have Sufficient Funds to Open My Self-Directed IRA?
This answer is contingent on the Self-Directed IRA custodian you’ll open your account through. Account set-up fees, transaction fees, and annual account fees can vary. At Madison Trust, we pride ourselves on being amongst the lowest in the industry. We offer flat-rate fees, and regardless of your IRA’s worth, you will continue to pay at a fixed price.

Will These Funds Cover the Costs Associated with My Investment?
Any investment purchase you make, including its related expenses, must flow through your Self-Directed IRA. It’s considered best practice to determine if you’ll have enough to cover all the required costs. If not, there are options to consider, such as creating a Multi-Member IRA LLC, pooling funds from multiple investors, or applying for a non-recourse loan. Consult a financial advisor to learn about other processes and their tax implications.

Stay tuned for volume two to learn other questions to ask before opening your Self-Directed IRA. Ready to self-direct? Call us today! Experience exceptional service for your exciting investment opportunities at Madison Trust.

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