Maximizing Investment Flexibility by Switching Your Self-Directed IRA Custodian

Published on October 21, 2024

When it comes to investment possibilities, a self-directed IRA (SDIRA) provides unparalleled flexibility. The many SDIRA investment options enable savvy investors to include a broad array of alternative assets within their retirement portfolio.

If you are considering opening your investment horizons to alternative assets in your retirement plan—and build a more diverse portfolio with a hedge against stock market volatility—consider switching your retirement plan to a self-directed IRA custodian.

IRA flexibility—SDIRA investment options are many

With a SDIRA, you aren’t limited to stocks, bonds, and mutual funds. By opening a new self-directed IRA, you can build retirement wealth with assets you already know and understand, with the same tax advantages as regular plans. You can include nontraditional investments you may already be investing in outside of your existing retirement plan.

That IRA flexibility shows up when account owners include real estate, precious metals, private equity funding, secured or unsecured loads, commodities, and many more alternative assets within their plans. You can create a more creative portfolio and take advantage of investment opportunities more nimbly.

Traditional and Roth IRAs may be self-directed (as can health savings accounts and education savings accounts), so contributions either grow tax-deferred (Traditional) or tax-free (Roth).

Time to switch IRA firms?

Switching your custodian to one that specializes in self-directed IRAs means partnering with a professional financial firm that has expertise in alternative asset investing. The custodian holds the assets on behalf of the account and executes investment transactions based on the account owner’s instructions. So, just as you would research your self-directed investments, be sure to do your research on SDIRA custodians as well.

When making the switch, be sure the new custodian also has the experience and processes in place that ensure clients are investing within IRS guidelines regarding SDIRAs. Check on their level of customer service, too. At Next Generation Trust Company, we are a boutique custodial firm that works closely with our clients to always keep that “trust” that is in our name—and a major factor in our client relationships. With 20 years of experience in the field and advanced training and certifications among our team members, we stand ready to share our industry knowledge about alternative asset investing.

And, as a full-service administrator of SDIRAs and other plans, we make sure mandatory reports and filings are handled timely and accurately.

If you’re seeking more IRA flexibility and want to know more about how to switch to an SDIRA custodian, contact Next Generation at NewAccounts@NextGenerationTrust.com. If you’re comfortable moving ahead with a new self-directed IRA, check out our starter kits with step-by-step instructions to make an IRA rollover, transfer funds between like IRAs, or contribute new funds.