Since the Employee Retirement Income Security Act (ERISA) was passed in 1974, the big lobbyists for IRAs have been banks and investment firms. Since then there has been a common misconception that IRAs are only allowed to be invested in stocks, bonds, mutual funds, annuities and CD’s. Nothing could be farther from the truth.
The main reason you might not have heard of this type of retirement plan is that none of these traditional custodians have an incentive to allow you to make your own investment decisions outside of stocks bonds mutual funds, annuities and CD’s.
Since the downfall of the stock market in 2000 it has been individuals who have taken the initiative and built a market for “truly” self-directed IRAs.