The new paradigm, where IRAs are treated as investment businesses rather than as hedges against risk, is partially a product of the self-directed IRA. Rather than housing their IRAs with traditional custodians and accepting their restrictions, investors are able to make their own investment decisions and realize far greater returns. With the use of the Limited Liability Company, IRA holders gain absolute control over their IRAs.

In past years, an IRA was considered to be a hedge against uncertainty and it was expected only to grow through the incremental accumulation of modest returns. An IRA was a nest egg that was to be protected from all risk. Some of this still applies. You do not want to treat your IRA’s tax-advantaged assets like venture capital and throw them into high-risk investments hoping for incredible returns.

Last 5 posts by Investment Education Staff

• LEAP Options - November 16th, 2009
• Berlin Property - Invest in the Capital of Europe - November 16th, 2009
• Ways to Invest in Oil and Gas - November 14th, 2009
• Trading With Point And Figure Charts (Part I) - November 11th, 2009
• Is Your Real Estate Agent Knowledgeable? - November 11th, 2009