American IRA Discusses Can an Investor Use Options in a Self-Directed IRA?

ASHEVILLE, NC / ACCESSWIRE / April 8, 2021 / Given the amount of freedom an investor can exercise within a Self-Directed IRA, many questions about these retirement accounts typically focus on what an investor can do. According to a recent post at American IRA, the IRS strictly limits certain assets within a Self-Directed IRA, making it possible for investors to believe that any type of trade within a Self-Directed IRA is possible. But this is not the case, and there is a lot of gray area that investors should know, according to the Self-Directed IRA administration firm.

For starters, the post highlights sources from Investopedia that deal with these questions, addressing how specific brokerage firms deal with investors who want to open accounts for options trading. The post also highlights the risky and volatile nature of options trading, wherein an investor uses leverage to potentially accelerate returns from a stock going up or down. This is a highly risky strategy that has the potential to wipe out lots of money for an investor in a short amount of time, and not a typical retirement strategy.

For this reason, the post also highlights what investors will need to know before opening up a Self-Directed IRA. A Self-Directed IRA makes it possible for investors to open up all sorts of alternative investment strategies for retirement, such as investing within real estate or precious metals. Other options, such as investing in private LLCs or private stock, as well as private lending, can help an investor diversify retirement assets.

Margin trading on stocks is a bit of a different animal, according to the post. “Margin trading isn’t, strictly speaking, an ‘asset’ like many people think of it,” said Jim Hitt, CEO Of American IRA. “And for that reason, there are a lot of nuances here that investors need to know before diving into the deep end of the pool.”

For more information, investors can review the post at www.AmericanIRA.com. Alternatively, investors may contact the Self-Directed IRA administration firm in North Carolina by calling 866-7500-IRA.

About:
“American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $500 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties, or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term “they” refers to American IRA, located in Asheville and Charlotte, NC.”

SOURCE: American IRA, LLC

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