Self Directed IRA Investment in an LLC

A truly self-directed IRA is one where the IRA owner does not have to filter every decision through a self directed IRA custodian. The vast majority of IRAs are not self-directed. Most banks and other, major financial institutions only offer the traditional IRA custodian relationship. This means that your investment actions are limited by their plan documents more than by the actual IRA laws.
A self-directed IRA is governed by a plan document that seeks to comply with the letter of the applicable federal laws while retaining as much freedom as possible. One plan for expanding that freedom is the formation of an LLC within an IRA. This arrangement gives the IRA owner the ability to write checks for investments rather than having to ask the IRA custodian to write checks--and then paying the required fees.
Such self-direction can be a powerful tool in the hands of an experienced investor. It can also be a powerful tool for self-destruction in the hands of an inexperienced, "whim" investor. To get the most from a self-directed IRA, an investor has to be willing to perform due diligence on every investment opportunity. You may have a good advisor who can help you avoid costly mistakes but they will not take the time to do your research for you.
When Is the Time to Open a Self-Directed IRA?
Any time is a good time to open a self-directed IRA, but you should not start wheeling and dealing with retirement until you have learned how to consistently make money with your money. Starting a relationship with an IRA advisor is a good idea because they can help point you in the right direction. You cannot expect them to do your work for you, however, so you have to want to study and learn the ins and outs of investing in alternative investments.