You don’t always have to buy stocks, you know. You can, and you certainly can using a Self-Directed IRA, but there’s a bigger world of investing out there. We say that because as investors look for ways to diversify their portfolio, they are increasingly turning to alternative assets. These assets, which include real estate, private equity, precious metals, and more, provide an opportunity to invest in assets that are not tied to the stock market. Self-Directed IRAs offer a powerful tool for investing in alternative assets and provide greater control over retirement investments.

What are Self-Directed IRAs?

Self-Directed IRAs are a type of Individual Retirement Account that allow investors to invest in a much broader range of assets beyond traditional stocks, bonds, and mutual funds. With a Self-Directed IRA, investors can invest in alternative assets such as real estate, private equity, precious metals, and more. Self-Directed IRAs provide investors with greater control over their retirement investments and the ability to make investment decisions based on their interests, knowledge, and personal expertise.

Exploring Alternative Assets with Self-Directed IRAs

Real Estate

Real estate is a popular alternative asset for Self-Directed IRA investors. Investments in real estate can include rental properties, commercial properties, and even raw land. Real estate investments can provide a steady stream of income into the account through rental income and appreciation in value over time. However, investing in real estate requires careful consideration and due diligence. Investors must be prepared to handle the complexities of letting a property manager handle the real estate on behalf of the IRA.

Private Equity

Private equity is another popular alternative asset for Self-Directed IRA investors. Investments in Private Equity include investments in privately held companies or private funds. These investments can provide the potential for high returns but also come with higher risk. These investments require careful consideration and thorough research, as investors must be able to evaluate the company or fund’s performance and management team.

Precious Metals

Investing in precious metals, such as gold or silver, is another alternative asset option for Self-Directed IRA investors. Precious metals investments can provide a hedge against inflation and market volatility. However, investing in precious metals requires careful consideration of the storage and insurance costs associated with physical metals.

Cryptocurrency

Cryptocurrency, such as Bitcoin, has become increasingly popular as an alternative asset for Self-Directed IRA investors. Investing in cryptocurrency can provide high potential returns but come with their own risks. Investors must carefully evaluate the security and stability of the cryptocurrency platform and understand the tax implications associated with cryptocurrency investments.

What to Know About Alternative Asset Investing in a Self-Directed IRA

We’ve established that Self-Directed IRAs provide a powerful tool for investing in alternative assets beyond traditional stocks, bonds, and mutual funds. By investing in alternative assets like real estate, private equity, precious metals, and cryptocurrency, investors can diversify their portfolio and potentially increase returns, utilizing any previous investment experience they have to their advantage.

However, remember that investing in alternative assets requires careful consideration and due diligence. Investors must evaluate the potential risks and rewards associated with each investment and ensure they have the knowledge and expertise to make informed investment decisions.

Self-Directed IRAs provide investors with greater control over their retirement investments and the ability to invest in assets that align with their personal interests and expertise. Whether it’s investing in rental properties, privately held companies, or precious metals, Self-Directed IRAs offer a world of investing beyond traditional stocks and bonds. With careful consideration and due diligence, Self-Directed IRAs can provide investors with the opportunity to diversify their portfolio and potentially achieve greater returns over time.

Want to learn more about how to start investing this way? Reach out to us at American IRA by dialing 866-7500-IRA.