Five Benefits to Holding “Regular” Investments in a Self-Directed IRA

Self-Directed IRATo many, the idea of investments is pretty simple. You put your money in something, you watch that something, you hope it grows. When people start talking about retirement accounts and IRAs and Self-Directed IRAs, their eyes glaze over. Why can’t investing just be simple?

Well, there are a number of reasons that investing isn’t always so simple. But if you have an idea of where you want to go with your retirement portfolio, then it’s your job to make those investments more simple. But simplicity alone isn’t enough: you should always aim at making your investments stronger whenever possible.

In order to accomplish this feat, you’re going to need to know a few things about holding investments in a Self-Directed IRA. More specifically, you’re going to have to know the benefits of holding investments in a Self-Directed IRA, as these benefits can potentially represent a lot of saved money over the long haul. Let’s take a look at holding “regular” style investments in Self-Directed IRAs:

Investment #1: Real Estate.

Real estate is a common investment, so it’s not surprising that this is where we start. Did you know it’s possible to hold real estate within a Self-Directed IRA, and that doing so can afford you certain protections? For example, all loans for real estate within a Self-Directed IRA have to be non-recourse, which means that your lender can’t hold you personally accountable and can’t seize the funds in your IRA account. In this case, you get extra protections simply for holding the real estate in a different type of account, and using a different type of loan.

Gold Coins GrowingInvestment #2: Precious metals.

Precious metals are a consistent investment even for the most bear-ish investors who think that gold and silver aren’t going up very high any time soon. These people can hold as little as 2% of their retirement portfolio in precious metals…yet they recognize the value of holding them. If you’re more bullish on these precious metals, you can use your Self-Directed IRA to make all sorts of investments, realizing the benefits of Self-Directed IRAs but applying them to the world of precious metals.

Investment #3: LLCs and partnerships.

It’s common to invest in private companies with your own money; it’s less common to use a Self-Directed IRA for these investments. Yet you can still realize the benefits of the protections of a Self-Directed IRA as these companies grow, allowing you to see a great return on investment if the company grows.

Investment #4: Private stock.

Investing in private stock is a great way to keep a hands-off approach from your portfolio while keeping money out of the public stock market. People who fear fluctuations in the stock market can generally benefit by having money in private stocks, as long as they know how to do their research. The beauty of Self-Directed IRAs is that there are many options for your investments, allowing you to tailor the IRA to your skillset and experience.

[tweetthis twitter_handles=”@iraexpert” hidden_hashtags=”#SelfDirectedIRA”]When people talk about Self-Directed IRAs, their eyes glaze over…[/tweetthis]

Investment #5: Restaurants.

Self-Directed IRAAlthough restaurants fall under the “private stock” we were just talking about—investing in private companies—it’s worth highlighting that many people love to invest in places like restaurants, bakeries, and other local businesses to watch their money grow. With a Self-Directed IRA, you’re free to make these kinds of investments.

If you want to know more about Self-Directed IRA benefits and options, be sure to call us at 866-7500-IRA(472) or keep browsing for more information. You’ll likely find that there are benefits to Self-Directed IRAs that you’ve been looking for within your own retirement portfolio.





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