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Glite Dictionary
🧑‍💼 Independent 💰 Investor-controlled
self-directed

self-directed

1 6.6
An account the owner controls to choose and manage investments
  • adjective
  • /ˌsɛlf dɪˈrɛktɪd/
  • Specialized
translation icon : autodirigido
  • Many investors prefer a self-directed IRA because it allows them to choose their own investments.
  • self-directed IRA
  • self-directed brokerage
  • self-directed account

Examples

  • You can invest through your IRA if it's a self-directed IRA, correct?

  • Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes.

    Blog text (27)

  • All in all, whether you choose to put your money in a CD, stick it in a savings account, invest through a Self-Directed IRA, or even just stick with the bare minimum IRA, any one of these steps is a step in the right direction.

    Blog text (2)

  • For one thing, the overwhelming majority of today’s retirement plans are "self-directed" plans, meaning that their participants must select the mutual funds in which their assets will be invested.

    Academic text (2018)

  • In most 401(k) plans, there are even more options, including a multitude of mutual funds, and in some cases, a self-directed brokerage account if you are savvy enough to manage the 401(k) on your own.

    Blog text (20)

  • With a self-directed retirement account, you can manage your investments without needing a financial advisor.

  • A self-directed account gives you the freedom to invest in various assets, including stocks and real estate.

Antonyms

custodial
24 6.4

Giving care and watching people or things to keep them safe

How Self-Directed

self-directed
  • Specialized
1 6.6
managerial
25 5.5
custodial
24 6.4

Surface Forms

self-directed positive

Morphology

self-directed = self + direct (transparent) = self + direct + ed

Financial sense retains the literal composition: controlled/managed by the account holder (self) rather than by others.

Etymology

Self-directed comes from self ('own') plus directed ('guided'), so it literally means 'guided by yourself'. That is why a self-directed account or plan is one the owner 'guides' themselves, choosing and managing investments rather than leaving them to a bank or adviser.