Has anyone setup a self directed IRA - looking to avoid problems

[slipslidingaway]

that others may have encountered, TIA.

[trof]

1. Yep. It was easy.

When I retired (10 years ago) I rolled my company IRA into a Schwab BROKERAGE IRA.
A brokerage IRA gives you the most flexibility/options for investing.
You can buy stocks, bonds, other types of debt instruments, CDs, etc.
About the only thing they won't let you do in an IRA is buy and sell options.
If you want to do that you'll have to open another (non-IRA) account.
Good luck.

[A HERETIC I AM]

2. Some IRA custodians will let you write covered calls.

You're right in general about restrictions on options trading because if a trade were to go against you, you can not simply add money to an IRA account in order to cover any shortfall. Same goes for margin agreements.

But writing a covered call is very low risk because you must have the shares in the account to cover should you get called away.

[trof]

3. Yes, you can write covered calls.

Not sure how investment savvy the OP is.

[slipslidingaway]

4. Speaking of setting up an LLC to invest in other assets...

for example rental property.

http://en.wikipedia.org/wiki/Self-Directed_IRA

"...Self-directed IRA accounts are typically not limited to a select group of asset types (e.g., stocks, bonds, and mutual funds), and most truly self-directed IRA custodians will permit their clients to engage in investments in most, if not all, of the IRS permitted investment types (an almost unlimited array of possibilities including foreign real estate). Some of the additional investment options permitted under the regulations include, but are not limited to, real estate, stocks, mortgages, franchises, partnerships, private equity and tax liens. Self-directed IRAs, by allowing a wide range of investment choices, improve the account owner's opportunities to diversify their IRA portfolio(s)..."

There are companies that will set up the LLC for you or you can do it on your own. Vanguard has let us invest in private companies in the past, but not property.

[slipslidingaway]

5. For example....

this company charges 4K for the initial set up and then a small yearly fee.
http://www.guidantfinancial.com/

This company charges a smaller set up fee, but the yearly fees are higher.
http://www.theentrustgroup.com/


http://www.selfdirectedira.org/

"...Section 408 of the Internal Revenue Code permits individuals to use a Self-Directed IRA to purchase land, commercial property, condominiums, residential property, mortgages, trust deeds, real estate contracts, private placements, limited partnerships, limited liability company's (LLC's), and many other types of investments with retirement funds held in many common forms of IRAs, including 401k's, Traditional IRA, Roth IRA, and Simplified Employee Pension Plan or SEP-IRA. (see IRS Publication 590)..."