Different Types of Real Estate Available with a Self-Directed IRA

Investment Options for Self-Directed IRAs

You may have heard about using a Self-Directed IRA if you’re currently planning toward retirement from active work. An individual retirement account or arrangement (IRA) is a type of retirement account that gives you more flexibility and control towards managing, saving, and investing in your future. Then again, you might need a little convincing to see why you should invest in Self-Directed IRAs. In this article, we at American IRA will explore some of the potential benefits of Self-Directed IRAs and the investment options available.

Benefits Of Investing in Self-Directed IRAs

Investing in Self-Directed IRAs comes with several benefits. One of the noticeable benefits of SDIRAs is that you can easily diversify your portfolio with assets from different classes with less correlation to the stock market.

These alternative assets can also help support your investment against unplanned economic events such as rampant inflation. Also, Self-Directed IRAs can help maximize your tax-advantaged strategy. Investors are coming to the realization of these benefits. More so, it gives you more control over your financial future. Self-Directed IRA Custodian like American IRA does not offer financial advice. What we do is give you control to use your retirement funds to invest in the alternative options you choose.

Investment Options for Self-Directed IRAs

There are several alternative investment opportunities for Self-Directed IRAs. However, it is recommended to discuss with a financial advisor for proper guidance. American IRA does often provide ample information about what these asset classes might be, however, and why so many investors turn to them as part of a retirement portfolio that expands beyond the typical stock fund strategy. Here are a few of the asset classes to consider:

  • Real Estate. It is one of the most popular IRA investment options available for investors under Self-Directed IRAs. You need to understand that investing in real estate under SDIRAs is different from investing in real estate for personal use. The IRS has issued some stiff regulations regarding investing and acquiring real estate with IRAs. Some of the rules include: no self-dealing, no personal use of the real estate, and no DIY improvements.
  • Tax liens. Tax liens involve purchasing the lien on a delinquent tax account in the world of property taxes. This means an investor essentially takes over the lien on the piece of property, which in turn provides the possibility of high returns, should the debtor pay off these debts. However, in the event the property owner is unable to pay the taxes on the property, the investor might have the option to foreclose on the property and assume ownership.
  • Precious metals. Precious metals have a long and rich history in retaining their value, which is partially what makes them so attractive to investors. Investors who want to hedge against inflation often point to commodities such as precious metals as enjoying a healthy relationship to inflation. However, this is not specific investment advice, and inflation does not always correlate with a higher price in precious metals. Even so, many investors turn to precious metals because of their long history of retaining value across the centuries.

Self-Directed IRAs come with many benefits for investors looking to appropriately plan for their future. It is completely natural to look into the opportunities that Self-Directed IRAs present. However, keep in mind that when you make your own decisions, you’ll be more responsible for guiding your strategy than ever.

It is essential to discuss with a certified financial advisor or consultant to guide you through any investment process. 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 www.AmericanIRA.com.

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