Pros And Cons Of Self-Directed IRAs

Traditional bank and investment firm IRAs typically allow you to select from a menu of stocks, bonds and mutual funds. If you would like more control over how your retirement dollars are invested, you might want to consider a self-directed IRA. Offered by certain financial institutions, self-directed IRAs give you nearly complete control over investment decisions.

With greater diversification and potentially higher returns come significant risks and disadvantages. Many alternative investments are more volatile than traditional investments, and you will need to conduct your own due diligence and oversee your account's assets. Before you choose this option, review both the potential risks and rewards.