How to Invest in Your Future with a Self-Directed IRA

You never know where stocks will head in three years. You never know what tomorrow’s financial headlines might be. But you have a good idea that gold and other precious metals will probably hold on to their value, considering their thousands of years of history. And you have a good idea that real estate is likely going to be needed as well. That’s why many people use a Self-Directed IRA—and its ability to invest in more diverse assets than stocks and bonds—for their long-term future. But how does it work to invest in alternative assets with a long-time horizon, and what are your options for building a stronger, more diversified investment future? Here’s what you’ll need to know.

What Is a Self-Directed IRA?

Let’s start with the basics. A Self-Directed IRA is different from the traditional IRAs that most people are familiar with. With a Self-Directed IRA, you have more freedom over where your money goes. Rather than being limited to conventional investments like stocks or bonds, you can invest in real estate, precious metals, tax liens, and other alternative investments.

You’re not restricted to the typical market fluctuations you see in the stock market. Instead, you’re looking at options like real estate, private lending, and precious metals—investments that don’t always move with the ups and downs of the broader economy. It’s up to you and your financial advisor to decide how you’ll diversify, but if you’re worried about short-term economic growth and want to ensure that your retirement savings are stable, alternative assets might help. And a Self-Directed IRA is your key to accessing those assets with the protections of retirement accounts.

Investment Options

Real estate is one of the most popular choices for investors seeking alternative assets in their retirement portfolio. With real estate, you can invest in properties—whether residential, commercial, or even raw land—that can provide steady returns through rental income or long-term price appreciation. You can own raw land if you want. You can even own farmland. You can also hold more liquid real estate assets such as shares of REITs, or real estate investment trusts.

Another option is private IRA lending. This allows you to lend money to individuals or businesses in exchange for interest payments, often at a higher return than you might find with traditional investments. The key here is finding trustworthy lending opportunities that align with your risk tolerance.

Tax liens are another investment worth considering. A Tax Lien IRA lets you invest in liens placed on properties by the government for unpaid property taxes. In many cases, these can offer significant returns, though it’s important to understand the process before diving in.

For investors interested in more direct ownership, privately held companies are another asset class. Through a Self-Directed IRA, you can buy shares in businesses that aren’t available through traditional public stock exchanges.

And let’s not forget about precious metals. Gold, silver, and other metals are known for holding their value, especially during economic uncertainty. By holding these in a Self-Directed IRA, you’re able to build a safer, more diversified portfolio that’s not as vulnerable to market volatility.

What is the option for you? That may not be the question. You may simply want the freedom to choose which option is for you. And the way to that freedom is by opening a Self-Directed IRA with a reputable custodian who can help you get started.

Interested in learning more? Reach out to us here by dialing 866-7500-IRA.