The individual retirement account, or IRA, has been a way for individuals to set aside a specific amount of funds in a retirement account. Doing so, removes the funds from an investor’s taxable income andself directed ira and investment real estate has been an investment staple over the years.

Originally defined in 1975 as part of the Employee Retirement Income Security Act of 1974 (commonly referred to as ERISA), investors are allowed to establish and contribute to an IRA account.

A self-directed IRA simply means that you, as the individual IRA account owner, make the day to day decisions on where the IRA funds are to be invested, how much and when. A self-directed IRA allows an individual investor to place funds in alternative investments, outside the realm of individual stocks, bonds and mutual funds.

An IRA can be funded through regular contributions but they are also created when an employee with a 401(k) account leaves the employer and has the option of keeping the 401(k) funds with the employer or transfer the amounts to an authorized custodian. When the employee was at the employer, the only decisions the employee could make regarding where the funds were invested were typically relegated to selecting different funds the employer offered. Once the funds are rolled over, the funds are then considered “self-directed.”

The rise in popularity can be contributed to a few factors but perhaps the feature with the greatest impact is access to so-called “alternative” investments. This, along with the paltry returns investors have received over the previous decade or even losing money, investors with self-directed IRAs search for investments with greater yields compared to stock-picking or mutual fund rankings.

“Many of our clients have taken advantage of their self-directed IRA and discovered that there are viable investment options that provide double digit returns” said Jerry Cohen, President of EquityBuild. “Our investment opportunities aren’t ones that can be discovered on a broker’s website or in a mutual fund report. Each investment opportunity is carefully scrutinized then presented to our clients for review who can then access their self-directed IRA when they see an opportunity they want to be a part of.”

There’s no reason for someone with a self-directed IRA to settle for weak returns when their investment can provide solid, secured returns year after year. If you have a self-directed IRA and aren’t satisfied with your performance, perhaps giving EquityBuild a call can help you get the kind of returns you’re seeking.