Alternative Assets in a Self-Directed IRA Portfolio

If you read American IRA regularly, you know that we like to talk about alternative assets. But the truth about “alternative” assets is that there doesn’t have to be anything “alternative” about them at all. They can be your main approach. With a Self-Directed IRA, a piece of real estate or even a gold bar can be just as valid an investment in your retirement portfolio as a company on the New York Stock Exchange. Even so, we acknowledge that not everyone knows what kinds of alternative assets are available when you use a Self-Directed IRA. So let’s explore what these assets are, how you can invest in them, and what they mean for your retirement.

Real Estate in a Self-Directed IRA

Real estate is a popular choice for many Self-Directed IRA holders. Investing in real estate through a Self-Directed IRA allows you to diversify your portfolio with tangible assets that often have long-term growth potential. Here are some ways you can include real estate in your Self-Directed IRA:

  • Rental Properties: Generate regular income by renting out residential or commercial properties. Using a Self-Directed IRA, you’ll have to make sure that any rent collected goes through your property manager and into your IRA.
  • Commercial Real Estate: Invest in office buildings, retail spaces, or industrial properties. Companies can be great tenants because they drive consistent demand for office space, which helps you build passive income in a portfolio.
  • Raw Land: Buy undeveloped land for future development or resale. If you know an area that you anticipate will be hot with demand in coming years, this can be a wonderful way to diversify your retirement plans.

Real estate can offer a steady income stream and potential appreciation. That’s one reason why it’s such a key and valuable addition to your retirement portfolio.

Precious Metals

Investing in precious metals like gold, silver, platinum, and palladium can provide stability and a hedge against inflation. Here’s how you can include precious metals in your Self-Directed IRA:

  • Physical Bullion: Purchase bars or coins stored in an approved depository. You’ll have to make sure that your physical bullion meets specific standards set by the IRS.
  • ETFs: Exchange-traded funds that track the price of precious metals can be convenient ways to invest in previous metals without having to house any physical metals.
  • Mining Stocks: Invest in companies that produce precious metals—it’s perfectly easy to do within a Self-Directed IRA.

Tax Liens

Tax liens are another intriguing investment option for Self-Directed IRA holders. When property owners fail to pay their taxes, municipalities can place a tax lien on the property. For example, you can purchase tax liens certificates at a tax lien auction, earning interest when the owner pays back the lien. These interest rates are typically much higher than you’ll see for traditional loans.

These are also secure investments because if the property owner doesn’t pay the lien, you might have the opportunity to foreclose and take ownership of the property.

Tax liens can provide high returns, but they require due diligence to assess the risk and potential payoff.

Private Company Stock

Investing in private company stock allows you to support startups and small businesses while potentially reaping significant rewards. If you identify a great private company with loads of potential, you can hold your assets within the private company easily. You simply need to make sure it’s all done properly with a Self-Directed IRA.

And that’s where we come in. At American IRA, we offer Self-Directed IRA administration services to help you administer the account with ease and adherence to IRS rules. Want to know more? Reach out to us at 866-7500-IRA.

Rate this post