How to Use a Self-Directed IRA The First Time

Opened a Self-Directed IRA? Great. You now have access to more freedom and flexibility in retirement investing than you likely ever imagined. There’s just one question: now what? You can sometimes suffer from paralysis-by-analysis, not being sure what you can invest in, or what might be right for you. We can’t tell you what to invest in—our role at New Vision Trust Company, a Self-Directed IRA custodian—but we can help you understand the steps involved in investing for the very first time using this unique arrangement. Here’s what you’ll need to know.

Understanding the Basics of a Self-Directed IRA

Once you’ve opened a Self-Directed IRA, the possibilities may feel endless. But that’s both exciting and overwhelming. With this type of account, you’re no longer stuck choosing from a handful of standard options like stocks and bonds. Instead, you have the freedom to invest in things like real estate, private companies, and even precious metals.

However, this freedom can create confusion—especially for first-timers. The key is to break down the process and make it manageable. Don’t rush into anything and give yourself the time to explore the various options available to you. We find that once you understand the basic steps, you’ll demystify the entire process and feel much more confident about taking the financial reins, so to speak.

Choosing the Right Investment for You

So, with all of that in mind, what should you invest in? The simple answer is: it depends. (Sorry; it’s the truth.) It’s all about finding investments that align with your personal goals, risk tolerance, and interests. You’re making the choices here; New Vision Trust Company won’t tell you what to invest in.

If you’re someone who enjoys hands-on projects, you might consider real estate as an option. Maybe you’ve always wanted to buy property and rent it out, or you have an eye for value in the housing market. On the other hand, if you’d rather stay behind the scenes, you might be more interested in things like private equity or precious metals. You don’t have to stick to one type of investment either—using your Self-Directed IRA to create a diversified portfolio is a smart strategy.

Working With Your Custodian to Manage Your Investments

Even though you have the freedom to make all the decisions, you’ll still need to work with a custodian who specializes in Self-Directed IRAs to manage the account. The custodian is there to ensure that your investments comply with IRS rules and regulations. They won’t tell you what to invest in, but they’ll help facilitate the process and make sure everything runs smoothly. When you’re just starting, you might find yourself calling them a lot with questions.

That’s perfectly fine. In fact, we at New Vision Trust Company often say that’s exactly what we’re here for. We don’t give investment advice, but we do help you understand the investment process, so it doesn’t feel so darn intimidating. You’ll find that once we break it down, it’s actually quite easy.

Taking the Next Step

Once you understand how a Self-Directed IRA works and what investments are right for you, the next step is simply to dive in. Start small if you’re nervous. Whether you’re interested in real estate or another alternative investment, the more you explore, the more comfortable you’ll grow. And remember, there’s no rush. The beauty of a Self-Directed IRA is that you have the time and freedom to make decisions that fit your long-term vision for retirement.

Interested in learning more? Reach out to us here by dialing 866-7500-IRA.