Self-Directed IRA: Benefits & When to Choose One

A self-directed Roth IRA can present an investor with a number of unique benefits. While you may be better off staying with a managed IRA, some people would benefit from a self-directed IRA. Here are a few reasons that you might want to consider a self-directed IRA.

Control

The biggest complaint that many people have with their IRAs is that they have no control over them. They work hard for the money and faithfully make the contributions each year. However, they then leave it up to someone else to invest their money. If things do not work out like they should, their retirement money could be lost. Deciding what you invest in and when you do it gives you a level of control over the results. If something goes badly, you know that you have no one else to blame. 

Fewer Fees

When you are handling all of the investment decisions for your IRA, you can effectively eliminate many of the fees that come with a managed IRA. Fees can play a role in minimizing your retirement savings. If you pay enough management fees, they could cost you a big chunk of the money that you intended to save for retirement. By managing an IRA yourself, you can cut back on these fees.