Broker Check


Client Centered

Many self directed retirement account (“SDRA”) investors may not need help on identifying a non-traditional investment for their retirement account.

But the task of managing risk is a task that is best done with professionals that specialize in non-traditional assets within a retirement account.

 Risks such as-

  • Investment Suitability Risk
  • Inherent Investment Risk
  • Investment Structure & Operational Risk
  • Prohibited Transaction risk

SDRA Custodian

A SDRA custodian is a fiduciary but does not/cannot provide investment evaluation or advice. The custodian holds the non-traditional investment and typically provides the recordkeeping.

SDRA Facilitator

A facilitator does just what the name implies-facilitates the process. SDRAfacilitators are often mistaken as advisors. Although they may offer assistance with setting up a self directed retirement account or drafting of IRA LLCs, most are not licensed or regulated and do not/cannot offer the ongoing advice and fiduciary oversight that an independent Registered Investment Advisor does.

The task of avoiding a prohibited transaction with a SDRA is a serious matter. The violation of the IRS rules can result in the retirement account losing its tax-exempt status which includes possible taxes and  penalties.

Words of Wisdom

The best chance of succeeding with a SDRA and non-traditional investments is to work with professionals that are knowledgeable,specialize in the SDRA industry and take the extra steps in making sure that the investment through the SDRA is in compliance with the rules and regulations put forth in the IRS Tax Code.

Things to consider when investing with a self directed retirement account.

  • Understanding the Investment
  • Understanding IRS Code Section 4975 Prohibited Transactions
  • Structure of the Investment
  • Transaction Oversight
  • Fiduciary Oversight
  • Indentify the risks of the investment
  • Financial and reporting requirements
  • Ongoing monitoring of the investment
  • Exit Strategy
  • Custodian/Third Party service provider evaluation