Retirement investing is simple: get a retirement account and put money in stocks, right? Well, not exactly. There are all sorts of investments you can make within a retirement account when you have a Self-Directed IRA. The traditional approach to IRAs typically puts you in contact with a traditional brokerage, who only offer stocks, funds, and bonds. But a Self-Directed IRA with a Self-Directed IRA administration firm like American IRA can do so much more than that—allowing you to access the full gamut of available retirement investments from real estate to precious metals. Let’s dive more into this topic and explore what makes a Self-Directed IRA so unique.

Holding a Wide Variety of Assets in a Self-Directed IRA

It all starts with this: self-direction is essentially a shortcut to a wider range of retirement investments. These were always legal—you just need to find a way to direct your own IRA to make the purchases you want.

Imagine the potential. You could buy rental properties, generate passive income through real estate, or even fund a small business through your retirement account. This way, you can diversify beyond the standard portfolio offerings. And you can aways seek new opportunities for growth and protection against market volatility.

Taking Control of Your Financial Future

Control is at the heart of what makes Self-Directed IRAs unique. You, as the investor, are the decision-maker. Traditional IRAs and 401(k)s typically place the management of your investments in the hands of financial professionals or brokerage firms. While that may work for some, many investors prefer a more hands-on approach. With a Self-Directed IRA, you call the shots. You research, select, and execute your own investments—either on your own or with the help of advisors you trust.

This autonomy is particularly valuable if you have specialized knowledge in a certain area. Let’s take an example. Maybe you understand real estate. If so, you can make informed decisions about purchasing rental properties or flipping homes for profit—all within the tax-deferred or tax-free benefits of an IRA. If you’re passionate about small businesses or private equity, your Self-Directed IRA can be the vehicle to invest in these sectors. This ability to tailor your retirement strategy according to your expertise gives you a tremendous advantage over traditional IRA holders, who are limited to pre-selected assets that may not align with their goals or interests.

Tax Benefits Just Like a Traditional IRA

One of the most appealing aspects of a Self-Directed IRA is that it retains the same tax benefits as traditional and Roth IRAs. Whether you choose a traditional Self-Directed IRA—where contributions are tax-deductible and grow tax-deferred until retirement—or a Roth Self-Directed IRA, where qualified withdrawals are tax-free, the investment vehicle remains a powerful tool for building wealth over time.

For example, say you purchase rental property within your Self-Directed IRA. The rental income that property generates is sheltered from immediate taxation because it’s actually going to the IRA itself. This allows your investment to grow faster. Or, if you’re using a Roth Self-Directed IRA, that same rental income could become entirely tax-free upon withdrawal after you reach retirement age. The key point is this: even though you’re investing in unconventional assets, the favorable tax treatment remains the same as with a typical IRA.

Want to know more about how it all works? Want to further explore what makes a Self-Directed IRA so unique and special? We have plenty of information to explore here, but if you want to find out more, the fastest way is to get in touch with American IRA by dialing 866-7500-IRA.