Stocks. Bonds. For too many retirement investors, those are the only two asset classes available—especially when investing through an employer-sponsored plan like a 401(k).  But what if you want more?  What types of retirement investments can you include in an IRA using a Self-Directed approach? The answer is more diverse than you might expect. Rather than summarize everything at once, let’s explore the full range of options available.

Investing in Real Estate in a Self-Directed IRA

Real estate is often the first alternative investment people associate with a Self-Directed IRA—and for good reason. It’s familiar, tangible, and already part of many investors’ portfolios outside of retirement accounts.

Holding real estate within a Self-Directed IRA allows you to combine that familiarity with the tax advantages of a retirement account. This can mean long-term appreciation, rental income, or a combination of both.

With real estate, you’re still investing for retirement—but with assets you understand, especially if you have experience with strategies like flipping houses. The key is that the property is owned by the IRA—not by you personally—and all income and expenses must flow through the account.

Real estate options inside a Self-Directed IRA can include:

• Single-family rental properties
• Multi-family rental properties
• Commercial real estate (office or retail)
• Raw or undeveloped land
• Farmland and agricultural property

Each option comes with its own risk profile, income potential, and management requirements. Some investors prioritize steady rental income, while others focus on long-term appreciation. The flexibility to choose is a major reason real estate remains a popular Self-Directed IRA investment.

Investing in Precious Metals in a Self-Directed IRA

Looking to diversify beyond traditional markets while still saving for retirement? Precious metals may be worth considering—especially given their strong performance in recent years.

A Self-Directed IRA allows you to hold certain physical precious metals directly, rather than relying on ETFs or mining stocks. This gives you direct exposure to the asset while maintaining the benefits of a tax-advantaged retirement account.

Precious metals options can include:

• Gold bullion
• Silver bullion
• Platinum bullion
• Palladium bullion

However, not all metals qualify. The IRS sets strict standards for purity and storage. Metals must typically be held in an approved depository—not in your personal possession—making compliance an important consideration.

Investing in Tax Liens in a Self-Directed IRA

Tax lien investing operates differently from many traditional retirement investments. Instead of earning rental income or waiting for appreciation, your Self-Directed IRA purchases liens placed by local governments when property owners fall behind on taxes.

When the owner repays the debt, the interest is returned to your IRA.

This approach appeals to investors who prefer structured, rules-based investments. Interest rates and redemption periods are set by local governments, providing a defined framework.

For example:

• Florida allows rates up to 18% (with minimum returns in some cases)
• Arizona caps rates at 16%
• Iowa offers returns accruing at 2% per month

If the lien is not redeemed, your IRA may have the option to pursue foreclosure—often with priority over existing mortgages. This adds a layer of optionality, allowing investors to decide whether to sell, hold, or rent the property.

Investing in Private Lending and Notes in Self-Directed IRAs

Private lending places your Self-Directed IRA in the role of the lender. Instead of borrowing money, your IRA provides capital to individuals or businesses.

This can be attractive when borrowers don’t meet traditional bank requirements but still offer strong fundamentals such as collateral or income.

With this strategy, you control:

• Interest rates
• Repayment terms
• Collateral structure

The custodian handles administration, but the investment decisions remain yours.

Private lending options can include:

• Mortgages and trust deeds
• Secured promissory notes
• Unsecured notes
• Private business loans
• Commercial development loans
• Car notes
• Hard money loans
• Bridge loans
• Distressed debt purchases

Each structure carries its own level of risk. Secured loans provide collateral protection, while unsecured notes rely more heavily on borrower strength.

Other Self-Directed IRA Investment Options

Still want more variety? Self-Directed IRAs can also include:

• Single-member IRA LLCs (“checkbook control”)
• Joint ventures and partnerships
• Brokerage accounts (for stocks and bonds within an SDIRA structure)
• Alternative assets like commercial paper, convertible notes, and hedge funds

You don’t need to invest in all of these. The advantage of Self-Directed IRAs is flexibility—you choose the investments that align with your knowledge and strategy.

What About Collectibles?

You might wonder about assets like fine art or collectible cards. While these are considered alternative investments, they are generally not permitted inside an IRA under IRS rules.

This restriction applies whether your IRA is self-directed or not.

However, many investors are surprised by how many non-traditional assets are allowed when working with a qualified Self-Directed IRA custodian like American IRA.

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.