The 5 Biggest Lies Told About Self-directed Ira Accounts

If you are like me, you are probably looking for a way to increase the returns on your retirement investments. Our options appear to be limited but the problem lies in the fact that there is lots of misinformation out there. Many people are discouraged by their banks from self-directing their Roth IRA investments and because the banks lose money that way. Here are some common lies told about self-directed IRA accounts that you need to be aware of so you can make a more informed decision about how to manage your retirement investments.

1. Self directed Roth IRA accounts require a lot of time and effort on the account owner's part. Anyone who tells you this has got it all wrong. There are companies out there that are set up to help people who want to self-direct their IRAs. The companies provide an account custodian or trustee that listens to the account owner's needs and acts in their best interest.


2. A 2 to 3 percent return on Roth IRA investments it the best you are going to get. If you think 2 to 3 percent returns are reasonable, you are really getting the short end of the stick. It is possible to double that amount at the very least if you self direct your account, diversify your portfolio, and focus your investments on real estate.

3. You have to pay exorbitant fees for a custodian to manage a self directed Roth IRA account. When you let banks manage or employers manage your retirement savings, you are actually getting charged big fees and only getting a small portion of the profits. With self directed accounts, you pay very minimal annual fees and still get much higher returns in the end.

4. You, the account holder, are solely responsible for all the transactions and assets of your account when you have self-directed Roth IRA investments. Many people avoid self-directing their accounts because they are lied to and told that they have to be highly knowledgeable and experienced investors in order to be able to make the correct decisions. Legally, you are required to have an account custodian that helps you in the decision-making process and the custodian is ultimately the one who conducts all of the transactions.

5. There's no guarantee that you can maximize your returns if you rollover to a self directed Roth IRA. There are actually companies out there that guarantee to double or even triple your returns or pay the difference. Furthermore, you don't have to pay any fees to roll over from a traditional account to a self-directed account.

Make no mistake about it. It's important to dispel all the myths out there about self-directed IRAs. Your Roth IRA investments could make you a lot more money if you explore different options like self-direction. Believe me when I tell you that banks are going to discourage you from doing so since it hurts them in the long run but if you want higher returns and to secure a comfortable retirement, self-directing your account is the way to go.

By: Laurel Cohen

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Laurel Cohen is an active participant of a national network of professional writers who advocate socially conscious real estate investing through the use of retirement vehicles such as IRAs, 401Ks and other retirement assets. For more information, or to get involved, please visit www.ira-investing-guide.com now.