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Self Directed IRA?


ExpectedValue

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Have any of you set one of these up? Could you share your experiences? What custodian did you go with? Why?

 

Right now I have an IRA through my work, which I invest mainly in equities, but I'd like the ability to invest in non-public assets too. Some of the custodians I've seen on google seem kind of sketchy or really high in fees.

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  • 3 years later...

Anyone have experience with this?  I'm looking to invest my IRA in my fund and am seeing what self-directed IRA service makes sense.  I just looked at this one, which costs a bit over $100 per year it seems like.

 

https://www.iraservicestrust.com/why-ira-services#

 

If you have a fund , why not open a solo 401K and move your IRA? I have one from Fidelity which is free and have complete control over my investments.

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Anyone have experience with this?  I'm looking to invest my IRA in my fund and am seeing what self-directed IRA service makes sense.  I just looked at this one, which costs a bit over $100 per year it seems like.

 

https://www.iraservicestrust.com/why-ira-services#

 

If you have a fund , why not open a solo 401K and move your IRA? I have one from Fidelity which is free and have complete control over my investments.

 

Well, that was my initial plan and right now I just use my IRA as a sandbox to run investing experiments that might apply to the fund. 

 

The issue is retirement from my day job and that we don't currently charge fees at the fund and won't until it is large enough and I think the record is good enough.  In particular, while I'm likely to have enough invested assets between the fund (has all of my taxable, liquid net worth) and my retirement accounts, it will set up a situation where I'm pulling money out of the fund while setting up a roth ladder in the retirement accounts, which will last about five years.  Thus, unless the fund balance is large enough for me to live off of, it starts becoming less of my invested assets than my retirement account over time potentially, and I don't want to set up that dynamic.  I was thinking an elegant way to address this was just to move the retirement account(s) into the fund when I retire, which would stop the incentive misalignment over time. 

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Please check out the "prohibited transactions".  You might be OK, but get a Pension expert's opinion as it might be "self dealing".

It's way out of my pay grade.

 

Yes, I believe I'm ok as long as I don't charge any fees (which I wouldn't) and that the fund was operating without those funds being added (which it is).

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I believe it is much more restrictive than that.  Buy an hour of an experts time and be sure, the penalties are terrible

 

If it is more than that, then it is basically impossible, and people are doing it.  I of course will talk to a lawyer if it gets to that point, but I have not read about any other issues than those.

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