The foreign exchange market, also known as Forex, allows someone to exchange currencies around the world. Currency trading is one of the safest investments since fluctuations in the price of currency are very small (less than one cent per day). You can open and close positions in hours or hold them for as long as you want. Trading is done electronically and the market is open 24 hours a day for five and a half days. It is also the largest market in the world, much bigger than the stock exchange.

A Self-Directed IRA gives you the ability to invest in foreign currencies at your leisure. Self-Directed IRAs from traditional financial institutions do not usually let you trade currencies. They push their products on you (typically stocks, bonds, mutual funds). However, with a Checkbook Control Self-Directed IRA from IRA Financial Trust, you are not limited in your investment options. You have the ability to use your retirement funds any way you see fit, such as Forex trading.

There are many advantages of using a Self-Directed IRA to invest:

Tax Advantages: With the Self-Directed IRA LLC, you have all the tax advantages of traditional IRAs, as well as tax deferral and tax-free gains. All income and gains generated by your IRA investment will flow back to your IRA tax-free. By using a Self-Directed IRA to make investments, the IRA owner is able to defer taxes on any investment returns, thus, allowing the IRA owner to benefit from tax-free growth. Instead of paying tax on the Self-Directed IRA returns of an investment, tax is paid only at a later date when a distribution is taken, leaving the investment to grow tax-free without interruption.

Diversification: With the Self-Directed IRA LLC, you can invest in almost any type of investment, including real estate, allowing you to diversify and better protect your retirement portfolio.

"Checkbook Control": With a Self-Directed IRA LLC, you have even more advantages, including what's called "Checkbook Control." As manager of the Self-Directed IRA LLC you will have the ability to make IRA investments without seeking the consent of a custodian. Instead, all decisions are truly yours.

Access: With a Self-Directed IRA LLC, you will have direct access to your IRA funds allowing you to make an investment quickly and efficiently. There is no need to obtain approvals from your custodian or deal with time delays in awaiting approval from your custodian or pay any review fees.

Speed: With a Self-Directed IRA LLC, when you find an investment that you want to make with your IRA funds, simply write a check or wire the funds straight from your Self-Directed IRA LLC bank account to make the investment. The Self-Directed IRA LLC allows you to eliminate the delays associated with an IRA custodian, enabling you to act quickly when the right investment opportunity presents itself.

Lower fees: Another advantage to a Self-Directed IRA LLC account is that you can save a lot of money on custodian fees. With the “checkbook control” Self-Directed IRA LLC structure, you will not be required to seek custodian investments when making IRA investments allowing you to eliminate custodian transaction fees and account valuation fees.

Limited Liability: By using a Self-Directed IRA LLC with “Checkbook Control”, your IRA will benefit from the limited liability protection afforded by using an LLC. By using an LLC, all your IRA assets held outside the LLC will be shielded from attack. This is especially important in the case of IRA real estate investments where many state statutes impose an extended statute of limitation for claims arising from defects in the design or construction of improvements to real estate.

Asset & Creditor Protection: By using a Self-Directed IRA LLC with “Checkbook Control”, the IRA holder’s IRA will be protected for up to $1 million in the case of personal bankruptcy. In addition, most states will shield a Self-Directed IRA from creditors' attack against the IRA holder outside of bankruptcy. Therefore, by using a Self-Directed IRA LLC, the IRA will be generally protected against creditor attack against the IRA holder.

IRA Financial Trust does not advise you on investments you should or should not make. We do, however, give you the freedom to invest in what YOU want to invest in.

If you have any questions about the Self-Directed IRA and/or how it works, please contact one of our IRA Experts @ 800.472.1043.