Self Directed IRA (Individual Retirement Account)

A self-directed IRA (SDIRA) is a type of Individual Retirement Account (IRA) that allows you to invest in a wider range of assets beyond traditional stocks, bonds, and mutual funds, including real estate, precious metals, and private placements. (Please consult with your Tax, Accounting or financial planning professional)

Here's a more detailed explanation:
Key Features of a Self-Directed IRA:

Flexibility:
SDIRAs offer more flexibility in investment choices compared to regular IRAs, allowing you to invest in alternative assets. 

Alternative Investments:
You can invest in assets like real estate, precious metals, private equity, cryptocurrency, and more. 

Self-Managed:
While a custodian or trustee manages the account, you, as the account holder, are responsible for making investment decisions and managing the assets. 

Tax Advantages:
SDIRAs retain the same tax advantages as traditional or Roth IRAs, meaning contributions may be tax-deductible (traditional IRA) or withdrawals are tax-free (Roth IRA). 

Specialized Custodians:
SDIRAs are typically available through specialized firms that offer SDIRA custody services. 

Important Considerations:
Due Diligence:
As you are responsible for managing the investments, thorough research and due diligence are crucial. 

Rules and Regulations:
SDIRAs are subject to IRS rules and regulations, including those related to prohibited transactions (e.g., "no self-dealing" rule). 

Potential Risks:
Investing in alternative assets can involve higher risks, such as illiquidity and potential fraud, so it's essential to understand the risks involved. 

Seek Professional Advice:
Consider consulting with a financial advisor and tax professional to understand the implications of investing in a self-directed IRA.