What Is a Self-Directed IRA and How Does It Differ From a Traditional IRA? - Transcript
Self-directed IRAs sounds really great because you can take your money and do whatever you want with it the problem is you can take your money and do whatever you want with it within this IRA account so the problem is as it’s titled self-directed it means you’re responsible for everything that happens there there’s no failure to supervise case because there’s no supervisor there’s no broker unless there are some circumstances that wrongdoing can happen in a self-directed IRA but if no one recommends an investment to you and you happen to get into guess what a Ponzi scheme often show up in self-directed IRAs you know you’re going to find it hard to find a deep pocket that’s going to be responsible for what you did in your self-directed IRA nothing’s vetted there’s no due diligence done by the custodian.