After you understand all of the restrictions of a Self Directed IRA , starting a this type of ira can be relatively simple. You can work with a custodian ira firm or your local bank’s trust department. These firms usually do not give investment advice. The function of these firms is to keep the books and disburse money for example. Be sure that your self directed ira account balance has enough money to pay all ongoing fees. You should ask your financial advisor to recommend a custodian ira firm or a bank. Not all financial advisors, brokerage firms or banks are familiar with self directed ira’s so be sure to do your homework before approaching them.
Traditional ira accounts have been in existence for over 30 years, self directed iras have not. A self directed ira is not for everyone. Traditional ira accounts were designed to be easy for most investors to understand, and they have become fairly standard in the market. A self directed ira is for those investors who are very comfortable investing in non-standard investments. And self directed iras are relatively new so are not as easy yet to understand.
Be on the safe side, talk to your financial advisor before changing from a traditional ira account to a self directed ira account.