Are Self-Directed IRAs Worth the Fees?

Most people have never even heard of a self-directed IRA—let alone understand what it can actually do for their financial freedom. With only 5% of IRA holders choosing this path, it raises the question: is the traditional route limiting your investment options? In this episode, we’re joined by Aaron Fragnito—real estate investor and founder of People’s Capital Group—to demystify self-directed IRAs. He explains how you can invest in real estate, private businesses, and even crypto inside your IRA... while avoiding common pitfalls that could land you in hot water with the IRS. If you've ever wondered whether alternative investing belongs in your retirement strategy, this episode is for you. 🌍 What You'll Learn: ✔️ What exactly is a self-directed IRA and how it differs from a standard IRA ✔️ What assets you can (and can’t) hold in a self-directed IRA ✔️ How to avoid violating IRS rules when investing in real estate ✔️ Why diversification still matters—even when going alternative ✔️ A breakdown of common fees and what to look out for ✔️ Why you don’t have to move all your IRA funds to go self-directed ✔️ How Aaron helps investors grow wealth through New Jersey multifamily properties ⏳ Timestamps: 0:00 – Why most people don’t know about self-directed IRAs 1:15 – What is a self-directed IRA, really? 2:40 – What you can and can’t invest in (hint: no wine cellars or your kid’s college fund) 4:00 – Real estate? Yes. Your family vacation home? Nope. 5:30 – Prohibited transactions and the role of your IRA custodian 7:00 – Typical fees: account setup, annual costs, and hidden charges to watch for 9:20 – Flat fee vs. asset-based pricing models 10:50 – The real cost of complexity: Why simple fee structures matter 12:30 – Diversifying between stocks and real estate inside your IRA 14:15 – What percentage of your IRA to self-direct (and why all-in might be risky) 16:00 – Roth self-directed IRAs: Yes, they exist! 17:30 – How Aaron helps investors access NJ real estate passively 🌐 Follow Us Online: Website: https://sparkrental.com Instagram: https://www.instagram.com/sparkrental Facebook: https://www.facebook.com/sparkrental 💼 About Our Channel: Welcome to SparkRental! We help busy professionals invest in real estate passively without becoming landlords. From syndication insights to productivity hacks, we cover everything you need to build wealth while buying back your time. Subscribe for expert interviews, actionable tips, and exclusive resources!