Self-Directed IRAs
and Individual 401(k) Plans

Self-Directed IRAs and Individual 401(k) Plans

Investors and their advisors are often frustrated by the lack of choices, options, and alternatives when it comes to investing their retirement account funds.  This is even truer today with investors' pent-up frustration with Wall Street.  They want choices.  They want options.  They want alternatives.  In short, they want more control over their future than they have today.

Investors and their advisors now seek a Self-Directed IRA Custodian that provides choices, options, and alternatives.  They want to work with a Self-Directed IRA Custodian that gives clients and their advisors the ability to invest in a broader range of investment options, including specialized, non-traded assets often referred to as Alternative Investments (see examples listed below).

Investors and their advisors desire a Self-Directed IRA Custodian that provides the flexibility to properly diversify their portfolios and effectively manage their risk, that understands these issues and that has a professional team with the experience, expertise and technical competency to deliver on these needs. 

Exeter Trust Company has the technical expertise, experience, capacity, resources, and systems to assist investors and their advisors with these choices, options and alternatives.  It will provide clients the ability to choose and invest in these Alternative Investments through their advisors using advisor-directed and client-directed (self-directed) Individual Retirement Accounts, often referred to as Self-Directed IRAs. 

Alternative Investments for Self-Directed IRAs

Alternative Investments, also referred to as non-traditional investments, generally consist of, but are certainly not limited to, ownership interests in the following investments or assets:

  • Real Estate Investment Trusts (“REITs”)

  • Umbrella Partnership Real Estate Investment Trusts (“upREITs”)

  • Private Limited Partnerships (“LPs”)

  • Private Limited Liability Companies (“LLCs”)

  • Private "C" corporations

  • Co-ownership or fractional ownership of real estate related assets such as Tenants-In-Common investment properties (“TICs”) or Delaware Statutory Trusts (“DSTs”)

  • Closely held businesses

  • Real estate - residential

  • Real estate - commercial
  • Land - undeveloped or vacant

  • Promissory notes secured by deeds of trust

  • Promissory notes secured by mortgages

  • Factoring, auto financing, and other financing or notes

  • Tax Lien Certificates

  • Timberland investments

  • Precious metals - gold bullion

  • Foreign currencies

  • Other commodities

  • Hedge funds

  • MLPs

  • Oil & gas funds

  • Venture capital funds

Non-Permissible Investments

While there are not many, certain types of investments are specifically precluded from advisor-directed and client-directed (self-directed) Individual Retirement Accounts.  The short list of non-permissible investments or assets is as follows:

  • Collectibles (art, coins, automobiles)
  • Life insurance contracts
  • Shares of stock in "S" corporations

 

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