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This control requires a specific type of account, and it opens the door to many nontraditional types of IRA or 401(k) investment.
Here are the essential differences between traditional IRA or 401(k) investing and self-directed IRA or 401(k) investing:
Traditional IRA/401(k) Investing | Self-directed IRA/401(k) Investing |
Good for everyone, but especially suited to less-experienced and less-involved investors. | Good for anyone, but especially suited to those investors who want to invest more proactively and want to diversify their portfolio to non-traditional assets. |
Choose only from among traditional investment types: stocks, bonds, mutual funds, annuities, or CDs.
| Choose from among a much wider array of investments, including real estate, notes, land, private placements, limited partnerships, joint ventures, and much more. There are a few prohibited investment types. You may also purchase publicly traded securities or certificates of deposit of your choice. |
The account administrator—a brokerage or a bank, for example—may provide investment advice. | You are always exclusively in charge. You find appropriate and attractive investments on your own initiative. |
Brokerages, banks, and insurance companies may have an interest in promoting certain investments, especially their own branded products. | Entrust is completely neutral. Its role is limited to showing how to purchase rather than what to purchase. It has no investment products to sell. |
| You can contribute to the increase in the value of certain holdings. For example, through your account you may fund improvements to real estate investments. |
Remember that while Entrust provides excellent educational resources, we do not endorse or sell any investment products. The Entrust Group respects your privacy. Please read our Privacy Statement.
Attend seminars, workshops and classes on self-directed IRAs in your area.