top of page

Resources

How to Get Started with a Self-Directed IRA

Self-Directed IRAs (SDIRAs) offer investors the freedom to expand their retirement portfolios beyond traditional stocks and bonds into realms like real estate, precious metals, and private equity. If you're looking to take active control of your retirement investments, this short blog will walk you through the steps to establish your SDIRA and start investing in the assets you're passionate about.


Transitioning from a 401(k) to an SDIRA

Transitioning funds from a traditional 401(k) to a Self-Directed IRA can open up new investment opportunities but requires careful planning to ensure it’s done without tax penalties:

  • Identify a Suitable Custodian: Choose a custodian experienced with SDIRAs and the specific types of investments you're interested in.

  • Open an SDIRA Account: Work with your custodian to open an account. This will involve filling out various forms and providing identification details.

  • Execute a Rollover: Coordinate with your current 401(k) plan administrator to roll over the funds to your SDIRA. Opt for a direct rollover to avoid taxes and penalties.


Choosing and Working with a Private Custodian

The right custodian is crucial for managing your SDIRA effectively:

  • Custodian Experience: Look for a custodian with a robust track record of handling alternative investments.

  • Fee Structure: Understand all potential fees associated with the custodian, including setup fees, annual fees, and transaction fees.

  • Regulatory Compliance: Ensure that the custodian is approved by the IRS and follows all legal requirements for SDIRAs.


Steps to Setting Up Your SDIRA

Setting up an SDIRA involves a few key steps:

  • Application: Complete the application forms provided by your custodian. These will require personal information, investment experience, and a notarized identification process.

  • Funding Your Account: Decide whether you'll fund your SDIRA through a rollover, transfer, or fresh contributions.

  • Selecting Investments: Once your account is funded, you can start investing. Your custodian will facilitate these transactions but will not advise on investment choices.



Investing through a Self-Directed IRA involves significant autonomy, which demands diligent management. To achieve successful investment outcomes, it’s crucial to diversify your investments. Although SDIRAs allow for specialization in a particular asset class, such as real estate, diversifying across different asset classes can help mitigate risks. Conducting thorough due diligence on each investment opportunity is also essential. For instance, when investing in real estate, consider market trends, location, and potential rental income to make informed decisions. 


Additionally, it's important to regularly review your investment strategy and portfolio performance. Adjustments may be needed based on changing market conditions and your personal financial goals to ensure that your investments remain aligned with your retirement objectives.


Self-Directed IRAs offer a unique opportunity to tailor your retirement savings to include investments that match your personal expertise and interests. 


By following the steps in this article, and working closely with a knowledgeable custodian, you can maximize the potential of your retirement funds.


If you are ready to have a conversation about getting started with a Private Custodian for a Self-Directed IRA, you can reach directly out to our preferred Private Custodian for Alternative Assets, which is the NuView Trust Company.


--

Commentaires


Schedule a 1:1 Call

Sign Up For Our Webinar

Mask group.png

Download Our "How To Get Started" Guide

Contact COASTAL

While we’re great at navigating your future, here’s an easy way to get in touch today! Let’s get the conversation started.  

 

Located At:

227 S Orlando Ave, Unit A
Winter Park, FL 32789


Get In Touch:

Investor Relations: relations@coastalinvco.com
Customer Service: info@coastalinvco.com
Technical Support: support@coastalinvco.com

Phone: 1-888-411-2280

Thanks for submitting!

bottom of page