Contributing to an IRA is a very smart retirement decision.  The custodian IRA accounts continually gain interest until your 59 ½, but are controlled by larger companies and fund managers that have other goals in mind.  While their main responsibility is earning money, they may not always have your best interests at heart, earning you the profit margins that you could be seeing. 

Taking control back, and putting the money where you believe it should be invested is a much smarter move if you want to see some serious gains, but you have to understand that you’re not able to control the money itself, but the decisions on where it is being placed.

One of the biggest attractions consumers and investors find in a self-directed IRA is the ability to make decisions on where your money is going to be invested, rather than allowing the large brokers and holding companies to choose where your funds go.  It seems like common sense at first glance, but because so many people fail to completely understand different markets, and where it is possible to earn the highest returns, they leave the tough decisions up to someone they feel has more experience.   This experience does help the accounts grow, but it helps your brokers and their associates out even more.

 Because the IRS has stated that you’re not allowed to control the funds in your IRA, but rather, determine where they are going to be invested, you’ll require a sort of middleman in any transactions between you and your account.  This middleman is called a custodian to your IRA, and is your guideline to higher returns. 

They will make suggestions, and allow you the decision of whether or not to play your money into those investments.  Be careful of these larger companies having huge loyalties with other companies, rather than someone like a private custodian who truly has your best interests at heart.

Probably the best aspect of a self-directed, or custodial IRA is that it is designed to provide you with a substantial income for years after you have retired from the work force.  Because of the longevity in these types of accounts, you’ll want to take your time making any big decisions, such as converting it to self-directed, or custodian IRA.  Taking your time is alright in situations like these, because you are planning for your retirement, and need to be sure that the decisions you are making today will have a positive impact years down the road when you’re ready to rely on the IRA for your savings.