Many custodial companies are using the term "Self-Directed" to describe the IRA and 401(k) products that they market. Unfortunately, what these companies aren't telling you is that, when used to describe retirement plans, the term "Self-Directed" can actually have either of the following meanings:

1.) Traditional IRA's- typically offer only limited investment options for plan owners (stocks, bonds, and mutual funds). You "Self-Direct" your account only in the sense that you choose your investments from a very limited list of stocks and mutual funds offered through your account custodian.

If you have an Ameritrade account (or similar), you have this kind of "Self-Directed" account.

2) Traditional "Self-Directed" IRAs - expand the investment options from stock and mutual funds to also include real estate, tax liens and a host of other potentially higher-yielding investments. Although this is a step in the right direction, owners of these Traditional "Self-Directed" IRAs soon learn that there are some significant drawbacks to this type of "Self-Directed" plan:

• Who’s The Boss? - Custodial "Approval" is required before you are allowed to make an investment. (Why should you need to get someone else’s approval to invest YOUR funds?)
  
• Delays - Ready to invest? GREAT! Now fill out the paperwork and WAIT up to a week or longer! (Say goodbye to time-sensitive investment opportunities!)
  
• Interest on Uninvested Funds - Uninvested funds are held in an account at the custodian that pays you little or no interest. (Shouldn’t you be the one making the interest on YOUR uninvested money?)
  
•  Fees - Typical fees include a yearly "Maintenance" fee (usually based on a percentage of the market value of the assets in the plan), fees for buying AND selling assests, and fees for every little service from document safe-keeping to cashier's checks and faxes.
  
  If you have an account with Entrust or Pensco (or similar), you have this type of "Self-Directed" retirement account. 

The IRA LLC Doctor TRUE IRA and TRUE 401k are the next level in Self-Directed Retirement plans.

Review our LLC plans in the main page or click on the image below to get started on your own IRA LLC CheckUp.