Self-directed retirement plans give account owners control of their retirement funds and the freedom to make their own investing choices. They are somewhat of a do-it-yourself type of plan and that’s why our clients prefer them. While self-directed plan custodians like Midland IRA do take care of the administrative details, plan owners themselves enjoy finding their own potential assets and reaping the benefits from the choices they made.
This weekend, I actually experienced what many of our clients feel about DIY projects, even though I wasn’t thinking about self-directed retirement plans. I spotted a well-used glider bench. I looked at and thought, “This is exactly the kind of porch swing I am looking for, but don’t want to pay the retail price.” So I told my husband, “Don’t worry, I’ll be the one to work on this. I won’t make you work on refinishing this piece at all.” He made me shake on it and then he agreed and helped me to bring it home and set it up in the backyard so I can work on it.
A couple hours into sanding (it was a big piece) I was thinking to myself, did I bite off more than I can chew? Why didn’t I just pay for the bench, from the store, brand new? Do most people put this much work into one piece of furniture that might turn out as a bust after all? But, I stopped and realized that what I don’t like is just agreeing to what the store has to offer, the price they indicate and the exact style that is given. I want something that has a personal touch or feel to it. Something I don’t feel guilty about each time I walk up to my front porch, did I over pay or could I have done it myself after all? I realize that by doing it myself, this is a great conversation piece when people ask where I got my bench. This is something I have researched, prepared for each stage and executed, and I can reap the rewards whenever working in my front yard or just sitting on my front porch early in the morning—finding great satisfaction in the fact that I did it myself! This is “do-it-yourselfer” due diligence. I have weighed the risk versus reward, the time projected to spend, and whether this is something I believe in or not.
In many ways, this is similar to the way our clients who use self-directed retirement plans do their own due diligence. They come to Midland IRA not because we have any investments to sell or offer to them. Rather, they have already decided that this investment idea may not be administered in a traditional IRA brokerage account, but this is what they want, what they believe in, and want to invest in. They already think outside the traditional investment box. They look at alternative assets and opportunities with a creative lens. We may see an old building in a local neighborhood, they may see a fixer-upper with renting potential. Where we may know of someone that owns a small, but steady business, they may see dedication and potential in business growth to loan funds to for start-up purposes.
As I have learned with my own home improvement projects, both successes and failures, the headache is in the prep work, but the reward is the confidence and peace of mind when you see the end result. Do you have the same creative DIY mindset when it comes to your IRA as well?
To learn more about self-directed retirement plans and alternative assets, please contact Midland IRA today!