Real Estate Ira Custodians

Written by Johnny Kitchens
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There are as many types of IRA custodians as there are investors. The best relationship is one where the investor and the advisor share an understanding of the investor's goals and tolerance for risk. An advisor should never push an investor where the investor does not want to go. Neither should an advisor simply approve every idea an investor has. A good advisor should let the investor have as much or as little control as the investor wishes but should always make their feelings known.

A rubber-stamp advisor may allow an investor to pour money into losing propositions (which is not what a retirement account is supposed to be for). A controlling and risk-averse advisor may cause an investor to miss out on high returns. The type of advisor that is best for you is one that complements your style. If you are an active investor, you need an advisor that will double-check your findings but will follow your lead. If you are a passive investor, you need an advisor who will look for opportunities you might miss.

In recent years, IRA investments are being directed more and more towards non-traditional investment vehicles. Stocks and bonds still make up the vast majority of IRA holdings but real estate, lending, and venture capital are growing. As long as you follow certain strict prohibitions within the IRA laws, you can invest IRA funds in a broad range of opportunities. Compliance with the law should always be your main concern, however, and the main concern of your advisor.

Important Aspects of an Advisor for Real Estate IRA Investments

The most important aspect for a real estate IRA advisor to have, is experience. Real estate transactions within an IRA are complex and there are many ways to run afoul of the rules. An experienced real estate IRA advisor can simplify and expedite the entire process. You also need to concern yourself with the fee structure of an advisor. Some charge annual fees only. Others may charge a fee every time your IRA writes a check to pay the water bill.


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