Referral

  • Home
  • Our Process
  • Our Team
    • Meet The Team
    • Our Story
    • Donald Hershberger Jr.
    • Donald V. Hershberger III
    • Brennan Clark
    • Candace Hackborn
    • Mary Anne Hershberger
    • Gretchen Maska
    • Krystal Waldron
    • Carrie Crutchfield
  • Services
  • Resources
    • Newsletters
    • Blogs
    • Recognition
    • Webinars
    • Videos
  • Client Access
    • Login
    • How-To-Videos
  • Contact Us


Don Hershberger was named on the 2023 Forbes Best-in-State Wealth Advisor list.

What is a Self-directed IRA?

graphic of an IRA with several people self directed ira usually uses a trustee or custodian check with your financial advisor paramount wealth management

Everybody needs to prepare for retirement at some point in their lives. It is important to start financially preparing for your golden years as soon as possible. There are numerous options and available retirement vehicles which you can choose from to start building capital for retirement. One of the most commonly used retirement vehicles is an Individual Retirement Account (IRA). 

Most people will choose an IRA that is managed by a professional investment fund manager. This is reasonable since the professional fund manager will have the knowledge and experience necessary to make smart investment decisions.  Of course, this makes sense for those who do not have much knowledge of the financial markets. On the other hand, there are some who do have some working knowledge of the markets and may want to consider a Self-Directed IRA (SDIRA). 

What is a Self-Directed IRA? 

Choosing a SDIRA as a retirement strategy allows you to directly manage how your funds deposited into the IRA are invested. Many SDIRAs will allow you to invest in alternative assets which may be prohibited with regular IRAs. An SDIRA is administered by a trustee or custodian, usually a financial institution, but it is managed directly by you, the account holder. However, you should be aware that with a SDIRA the trustee will not be able to provide you with investment advice. 

An SDIRA can be either a traditional IRA or a Roth IRA. Each has different tax advantages. With a traditional IRA you are depositing pre-tax dollars which means that you are able to deduct the funds on your tax returns for that year but will pay taxes upon withdrawal of the funds. A Roth IRA does not allow you to deduct what you deposit but you will be able to withdraw without paying taxes. With both types of IRAs, you will be charged penalties for early withdrawal before retirement age. 

You may want to consult with your financial advisor to decide which type of SDIRA you should choose. 

What assets can you hold in an SDIRA? 

Many times, with an SDIRA the administrator will allow you to invest in more than just the standard assets available with regular IRAs. Usually, regular IRAs are only allowed to hold stocks, bonds, certificates of deposit (CDs), exchange-traded funds (ETFs) and mutual funds. SDIRAs will usually be able to invest in various alternative assets such as commodities, precious metals, limited partnerships, real estate, private placements, tax lien certificates and more. However, you should check with your SDIRA custodian to find out exactly which types of assets are offered. 

Consulting with a professional financial advisor 

Since you are not able to receive investment advice from the custodian of your SDIRA you will want to be as knowledgeable as possible about the financial markets in order to make good investment decisions. However, you also have the option of consulting with your financial advisor who will have the experience and understanding of markets to guide you through constructing your investment portfolio.

CLICK TO DOWNLOAD

CLICK TO DOWNLOAD

CLICK TO DOWNLOAD

CLICK TO DOWNLOAD

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact our office for information and availability.

© 2022 Raymond James Financial Services, Inc., member FINRA/SIPC | Privacy policy | Legal Disclosure

Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc. Paramount Wealth Management is not a registered broker/dealer, and is independent of Raymond James Financial Services.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNERTM, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial  and ongoing certification requirements.

† The Forbes Top Wealth Advisors Best-In-State 2023 ranking, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. This ranking is based upon the period from 6/30/2021 to 6/30/2022 and was released on 4/4/2023. Those advisors that are considered have a minimum of seven years of experience, and the algorithm weights factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criteria due to varying client objectives and lack of audited data. Out of approximately 39,007 nominations, 7,321 advisors received the award. This ranking is not indicative of an  advisor’s future performance, is not an endorsement, and may not be representative of individual clients’ experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Raymond James is not affiliated with Forbes or Shook Research, LLC. Please visit https://www.forbes.com/best-in-state-wealth-advisors for more info.

Check the background of Paramount Wealth on FINRA’s BrokerCheck.