A promissory note is a form of debt that can sometimes be held in a self directed IRA or other approved investment vehicle. The borrower, through the note, promises to return the owner’s funds, and make fixed-interest payments to the owner in exchange for borrowing the money. Promissory notes have set terms, or repayment periods, ranging from a few months to several years. In a self directed IRA, the owner or a third party will have the responsibility of collecting the principal and interest due on behalf of the self directed IRA.
Investors need to know that promissory notes are marketed almost exclusively to sophisticated investors with the expertise and information to determine if the investment is appropriate.
Millennium Trust does not recommend any particular investment or asset category. Investors are urged to speak with a tax or investment advisor before investing.