As an investor, you invest. You identify potential investments that you believe will be in your best short and long-term interests. Part of this strategy can certainly include making investments with your self-directed IRA or 401(k) established through Fulcrum Self-Directed (FSD).
You may be currently only using liquid, non-retirement funding sources for your investments. Establishing a self-directed plan opens up opportunities available to you through either the self-directed IRA or 401(k). Think about the power of having full freedom and flexibility of such funds and its investments:
Investment Funding Diversification — You may be fortunate if you have the ability never to touch retirement funds for self-directing in non-traditional assets (e.g., real estate). However, you may tire of only using non-qualified funds for such investing, and may desire to use other sources of funding for your investments. You now have the option of using your self-directed funds in the manner that make the most sense to you. Use non-qualified funds for some investments and retirement plan funds for others. Have the freedom to invest in non-traditional assets only with your retirement funds leaving your non-qualified funds for other expenditures. Have the freedom of investing and growing your nest egg in either a tax-free or tax-deferred manner.
Investment Consolidation — Through a FSD self-directed retirement plan, you will have the freedom and flexibility to make both traditional AND non-traditional asset investments from one account where you control the checkbook. Literally invest in stocks, mutual funds, real estate and hard money loans from one account. Gone are the days of only rolling over into your self-directed plan those funds that you think you “need” for self-direction, and leaving the rest with your current custodian. Feel free to rollover and fund your plan with any and all funds that you desire, because you can invest as you see fit from one account.
Ever Been Told, “NO”? — You have an IRA or 401(k) and you have gone to your custodian and asked for checkbook control and the ability to invest in non-traditional assets. Ever made that request? Well, after being laughed at, possibly being looked at strangely….you were told “NO.” Why? Is it because the IRS or DOL prohibit you from investing in such non-traditional assets? Of course not. However, as the custodian of your IRA of 401(k), they can legally limit what you and your plan can invest into. And, you got it right…they will only offer you the ability to invest in assets that they sell and receive compensation for. Why not have the freedom to invest in any asset class that you feel comfortable investing into and is not prohibited by the IRS/DOL. The list of what you can invest in far outweighs what you cannot invest into.