Using a Self-Directed IRA to Start Off a New Year Right
When you have a Self-Directed IRA at your disposal, what is your list of options? Well, we have put together an expansive source of information for you to better understand Self-Directed IRA investing, but it is always good to brush up on the basics. Here is a brief primer on some of the most popular Self-Directed IRA investing options.
Real Estate
Land is always in limited supply. That is why so many investors turn to real estate for additional security in retirement. Not only does real estate include raw land, but it can include income generation when purchasing rental properties, such as commercial office space or single-family homes. There is a wide array of real estate assets available to those who invest in real estate with a Self-Directed IRA, including apartment buildings and more.
For many people, real estate is also an important hedge. When the stock market is down, people still need to live somewhere. And an income-producing investment in real estate can add a tremendous amount of security to a portfolio.
You might also think about tax liens as being under the umbrella of real estate, although it is not so cut and dry. Tax liens allow you to purchase the lien on an asset and potentially bring in ambitious returns, or perhaps even receive ownership of the deed itself, depending on the situation.
Precious Metals
According to Investopedia, “even today, precious metals have their place in a savvy investor’s portfolio.” Why do they say, “even today”? Because precious metals as a store of value have been around for a long, long time. And the role they have played in human interaction goes back thousands of years. It is unlikely that precious metals are going to lose their value any time soon. In fact, if you are looking for an investment with a long track record, precious metals deserve a closer look.
For most investors, the ultimate precious metal is gold. Gold is highly valuable and functions well as a store of value because it is rare, the supply is difficult to increase, and it’s in-demand. Gold is also easier to store than silver because you can store much more value in gold than you can in silver, pound for pound. Or, in this case: ounce for ounce.
Private Companies
Many people will use a Single Member LLC, for example, to create a “Checkbook IRA,” in which they control the checkbook of an LLC that is within a Self-Directed IRA, making it a powerful and flexible way to invest. But there are other options here, including owning private stock within a company that is not yet listed on any public exchange. For investors who make the right investment decisions here, there is potential for massive gains.
Private Loans
Lending from one individual to another—or in this case, from an IRA to an individual—is a powerful way to create an income-producing asset that does not rely on the stock market. Of course, this can be a volatile way to invest without proper research. But it can be a valuable way for investors to diversify out of the stock market, which is the goal of many Self-Directed IRA investors.
These are just four examples that demonstrate the possibilities of investing within a Self-Directed IRA. But keep in mind that these are also categories of investments. What you decide to do within these categories is up to you. That is the power of a Self-Directed IRA that frees you up for making your own investment decisions.
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.