Self-Directed IRA

What are the “Other” Investments are Allowed in a Self-Directed IRA?

It’s not the first page you might see at American IRA—but it hints at an important truth about why investors seek out Self-Directed IRAs in the first place. We’re talking about the Other Investments section here at Why is it so important? It’s important to know about all of the options that you have with a Self-Directed IRA, of course, but even more than that, this list of “other” investments helps elucidate why so many people want to direct their own retirement account: more control.

To help explain, let’s look at some of the other investment options and why these are possibilities when you direct your own IRA.

Other Investment Options in a Self-Directed IRA

When many people think about Self-Directed IRAs, they often think about the typical alternative asset classes with which they’re familiar. That includes real estate, such as apartment properties, single family rental units, and raw land. But it also includes gold and other precious metals. These are two popular options.

However, the truth about Self-Directed IRAs is that they expand the range of possibilities far more than most people might imagine. There are some limits—avoiding collectibles such as fine art and wine, for example—but it’s also worth noting some of the investment options that investors can look into. We’ve posted a list of these at the Other Investments section, but here is a brief rundown of some of them:

  • Mutual funds. Many people are familiar with mutual funds as a retirement investment asset class, but not as many people think about using them within a Self-Directed IRA. Using a brokerage account within an IRA, it’s possible for investors to seek out mutual funds as part of a self-directed retirement portfolio.
  • Farm real estate. Real estate is an obvious alternative asset class for many investors who want to diversify their overall portfolio. However, not many people consider farm real estate as a way to go. For that reason, farm real estate can be an investment that not many investors consider as a primary asset for retirement but is certainly a valid investment for retirement investors to consider.
  • Commodities.  Commodities are certainly a complex investment that most retirement investors will not consider, but they can represent valid investments within a retirement portfolio for those who are confident in their abilities to handle commodity investments.
  • Royalty rights. One of the chief concerns for many retirement investors is how to continue to generate income upon retirement. Owning royalty that generates income is a passive way to enjoy money coming in every month.

Other investments, such as rights and warrants, equipment and leases, and more can also be valid retirement investments if an investor goes about it the right way.

Making a Self-Directed IRA Work

The thinking behind a Self-Directed IRA is simple: an investor puts the power in their own hands and makes the decisions. This means that investors should do their homework to make sure that they know all of the options available to them, as well as homework on individual investments. When working with a Self-Directed IRA administration firm, for example, that firm will not make investment recommendations, but will instead administer paperwork. That puts the decision-making power in the investor’s hands, which is something that independent-minded investors often enjoy.

Interested in learning more about Self-Directed IRAs?  Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation.  Download our free guides or visit us online at


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