5 Offbeat Investments You Can Hold in a Self-Directed IRA

The word “offbeat” doesn’t have to be a bad thing. Maybe you like marching to a different drummer. And if that’s the case for how you build wealth for retirement, it’s worth taking time to consider why a Self-Directed IRA could be an intriguing option. After all, Self-Directed IRAs allow you to invest in a wide range of assets beyond traditional stocks and bonds. Let’s explore five offbeat investments that you can hold in a Self-Directed IRA, highlighting the versatility and potential benefits of this highly-flexible retirement vehicle.

#1: Real Estate Investments

One of the most popular alternative investments within a Self-Directed IRA is real estate. While you might think of real estate as a physical property, Self-Directed IRAs provide an avenue for you to invest in a variety of real estate-related assets. This includes residential and commercial properties, undeveloped land, or even real estate investment trusts (REITs). Real estate can offer the potential for rental income, capital appreciation, and diversification within your retirement portfolio.

#2: Precious Metals

Investing in precious metals like gold, silver, platinum, and palladium can be an attractive way to hedge against inflation and economic uncertainty. With a Self-Directed IRA, you can hold physical precious metals in the form of coins or bars. These tangible assets can provide a store of value that may act as a counterbalance to more traditional investments in your retirement account.

#3: Private Equity 

Private equity investments typically involve buying ownership stakes in private companies, startups, or venture capital projects. While these investments come with a higher level of risk, they also offer the potential for substantial returns. Through a Self-Directed IRA, you can participate in private equity deals and diversify your retirement portfolio with emerging businesses and innovative ventures.

#4: Tax Liens

A tax lien is a unique investment opportunity that can convert into real estate. But when you initially acquire a tax lien, you’re acquiring the debt that a property holder owes. This means that you often buy a tax lien from a state or local government, which means that the lien is in your possession. You can accept payments on this lien at a high interest rate, or you can eventually foreclose on the house and take it over as a potential property.

#5: Private Notes 

Private notes, or private loans, are great ways to generate passive income. If you acquire one and collect interest on it while the debtor makes consistent payments, that’s all you have to do. No muss, no fuss. Of course, the trick is to find people who will pay them off with consistently! That’s where we should highlight the fact that with a Self-Directed IRA, you’re in charge. You’ll be the one responsible for vetting potential investments, performing due diligence, and checking up on their overall quality and prospects.

Self-Directed IRAs offer investors a unique opportunity to explore a diverse range of investments beyond the usual stocks and bonds. From real estate and precious metals to private equity, private notes and tax liens, your options are vast. However, it’s important to remember that these offbeat investments can come with increased risks, and due diligence is crucial to making informed choices within your Self-Directed IRA.

If you’re interested in learning more or need guidance , American IRA is here to assist you. Our experienced team can help you navigate the complexities of Self-Directed IRAs and provide you with the information you need to begin making your decisions for yourself within an IRA. For more information, please call us at 866-7500-IRA.

Want more about alternative investments in your Self-Directed IRA? Visit: Alternative Investments for Self-Directed IRAs: What are the Options? | American IRA