It’s easy to fall into the trap of thinking the only investment opportunities are in stocks, bonds and ETFs. Thanks to self-directed IRAs, there are many ways to get creative and find viable investments for your retirement account.
For instance, investors can make a partial stake in a large rental property or hold another family’s business through a self-directed IRA. Let’s look at where smart investors can find alternative investment ideas and ways to maximize IRA investment opportunities.
Setting up Alternative Asset Management Capabilities
There aren’t many additional steps necessary to hold alternative assets in an IRA. For example, fully purchasing an investment property with funds in an IRA is pretty simple. But what if there’s a chance to join a group putting up the money for a new housing project, mall, or another multi-million dollar commercial real estate deal? Or a friend asks for help to invest in a business, or maybe a startup company is seeking investors for an online investing platform?
A popular way to get started is to open a self-directed IRA-LLC with checkbook control. This structure will allow the option to participate in alternative asset vehicles without waiting for the custodian to approve and cut a check for a specific investment. A checkbook IRA LLC can also empower investors to easily participate in deals and opportunities they might not have otherwise.
Where to Find Alternative Assets
Thanks to technology, a wealth of investment options can be found on alternative asset platforms. Investors can research almost any opportunity online, from crowdfunded real estate deals, peer-to-peer lending, startups, existing private businesses, cryptocurrency, precious metals, land rights and more.
- Consider one of a few options to start investing in commercial real estate. First, investors with a sizable IRA account can speak with a local commercial real estate broker to learn more about local investment opportunities. Also, consider crowdfunding platforms like FundRise that will allow an investor to transfer funds from an IRA-LLC to become a partial commercial real estate investor in various opportunities.
- If business investments sound more appealing, a self-directed retirement account custodian like Digital Trust can create access to equity crowdfunding as a great way to gain exposure to a wide range of private companies.
- There are several ways to discover asset ideas for investors who would like to focus on cryptocurrency and blockchain project investing. Investors can open an account on an exchange using an IRA with checkbook control.
- There is also no shortage of cryptocurrency-based ETFs; for sizable accounts, there are opportunities to invest in private funds. Finally, one great thing about cryptocurrencies is that investors can indirectly invest in physical assets like gold through Pax Gold—which is highly convenient because it allows the holding of gold without the storage or shipping fees.
Opening a Self-Directed IRA
When you open a self-directed IRA with Digital Trust, you can find ways to fund alternative investment ideas. Digital Trust’s friendly and knowledgeable staff can help you open an IRA-LLC with checkbook control in no time.
With a Digital Trust Self-Directed IRA, investors have the power to access unlimited alternative investment options for their retirement. This technology-driven, self-directed approach to developing a truly diversified retirement portfolio can bring peace of mind to investors.
Sign up with Digital Trust today.
Disclaimer: Digital Trust, LLC is a custodian of self-directed accounts whose role is nondiscretionary and administrative only. The accountholder must direct all investment transactions and choose the investments for the account. Digital Trust has no responsibility or involvement in selecting any investment. This letter shall not be construed as investment, legal, tax, or financial advice. Please consult with your competent tax advisor and/or legal counsel.
