What Investments are Possible in a Self-Directed IRA?

What Investments are Possible in a Self-Directed IRA?

A Self-Directed Individual Retirement Account (IRA) gives investors the ability to choose from a wider range of investments than traditional IRAs. With a Self-Directed IRA, retirees can invest in assets such as real estate, precious metals, and private businesses. This article will provide an overview of some of the investment options available to those with a Self-Directed IRA.

Self-Directed IRA Investment #1: Real Estate

Investing with a Self-Directed IRA can provide numerous attractive opportunities. Options like investing in real estate is one that shouldn’t be overlooked. Self-Directed IRA owners can use their accounts to purchase an entire property. This could be an apartment building or commercial space, or they can even invest in smaller pieces of property, like individual lots or just the land beneath a residential home.

Such Self-Directed IRA real estate investments provide potential for significant tax advantages and long-term growth. These are both especially attractive benefits for retirement investors. The key is to make sure you know your boundaries with a Self-Directed IRA. Many people are not aware that can’t manage these properties personally.

Self-Directed IRA Investment #2: Private Loans

Private loans provide investors with the opportunity to take a hands-on approach when it comes to their Self-Directed retirement investments. With this type of investment, there is direct control over who receives the loan, the interest rate received and under what conditions the loan is issued. By managing private loans, investors can reduce the risk associated with investing in private individuals or organizations. Additionally, returns on private loans are often higher than alternatives available through traditional IRA investments.

Self-Directed IRA Investment #3: Precious Metals

Investing in precious metals such as gold, silver, and platinum can be a unique way to diversify a Self-Directed IRA. With metal prices potentially on the rise, investors can speculate on current markets. A knowledgeable investor may even hedge against potential instability in the future. Precious metals investments provide durable protection with tax advantages.

Additionally, investors benefit from tangible protection. This comes in the form of physically stored safely with an account custodian. This custodian then arranges for an insured approved depository to take hold of the metals. The hands-off approach to investing in precious metals can be an attractive addition when considering investment options for a Self-Directed IRA.

Self-Directed IRA Investment #4: Cryptocurrencies

Investing in cryptocurrencies has become a popular way to diversify and hedge portfolios. With a Self-Directed IRA, investors have the opportunity to get involved with this asset class and gain exposure to the potential returns of digital currencies. Cryptocurrency investments can play an important role in one’s portfolio and should always be weighed carefully when making decisions about investing within a Self-Directed IRA. It is more important than ever for investors to understand the unique risks posed by virtual currency before deciding if it is appropriate for their particular situation.

Self-Directed IRA Investment #5: Traditional Brokerage Accounts

Investing in a Self-Directed IRA can open up the potential to grow your wealth exponentially. Investing in traditional brokerage accounts is a smart way to do this. Unlike some types of IRA investments, such as real estate, where funds might be restricted to physical property, investing in a brokerage account allows for varied and diverse large-scale investments including stocks, mutual funds, exchange-traded funds (ETFs), bonds, and more.

All investments made through these brokerage accounts must adhere to tax laws set by the Internal Revenue Service, so it’s important to understand these restrictions before initiating an investment. Doing thorough research on these options ahead of time can make sure that your investment is secure while also providing ample opportunities for growth.

For more information about what’s possible with a Self-Directed IRA, just reach out! Our number at American IRA is 866-7500-IRA.

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