A self directed IRA account frees you up from the usual limitations of a traditional IRA account; namely what you can invest in. You see, ordinary retirement accounts simply invest your funds in stocks, mutual funds, or bonds, and with the current economic scenario, this can be a very risky, if not a losing, proposition. Remember, it is your own future that is at stake when setting up a retirement fund, so you might want to have more say on how your retirement money is invested.

With a self directed retirement account, you set up your account with a self directed IRA custodian. With this type of custodian you are entitled to make your own choices as to where and how your funds will be invested. You can grow your IRA retirement account by investing in real estate (aka real estate IRA), businesses and many other types of investments.

Now, you may be wondering why you have not heard about a self directed IRA from your financial advisor. Well, some financial planners would recommend this type of IRA, but the problem is that the financial institution where your IRA is set up currently does not allow these types of investments. There is nothing wrong with this, except that your investment alternatives are very limited. Besides, some people are simply not cut out to invest on their own.

But, if you have experience in alternative investing or you have an entrepreneurial spirit within you, then a self directed IRA may be a good choice for you and the future of your retirement account. With this setup, you can substantially grow your retirement money without the interference of a traditional IRA custodian. Imagine the number of additional investment opportunities that you may be able to invest in if you work with an independent self directed IRA custodian. On top of the expanded investment options, the gains accrued to your IRA account receive the same tax advantages as you old traditional IRA.

However, it must be emphasized that not all types of assets can be allowed as investments for this retirement account. You cannot invest your IRA funds, although they maybe self directed, in collectibles, life insurance policies or with a disqualified party. If you do, your IRA could be disallowed and you may face savvier penalties.

When setting up a self directed IRA, it is important to consult with a tax professional. If he is worth his salt, then he will know how to properly set up a self directed IRA and use it to grow your funds.  Looking for self directed IRA services, then check out www.SunwestTrust.com.