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What IRA Investments Can I Make When I Self-Direct my IRA

IRA Investments
4 Minute Read

When you establish a Self-Directed IRA LLC, you can make all types of Self-Directed IRA investments if they are IRS approved. The Self-Directed IRA LLC offers one the ability to use his or her retirement funds to make almost any investment without requiring the consent of a custodian. All decisions will be yours.

Below is a list of a few most popular Self-Directed IRA investments you can make with a Self-Directed IRA LLC.

Real Estate

Why Real Estate?

Real estate is the most popular alternative investment among retirement account holders. A Real estate investment is a highly tangible asset that can diversify your investment portfolio. Furthermore, it acts as a hedge against inflation: while the value of many investments erode during inflation, real estate thrives. With the rise of inflation comes the inevitable rise of rental income.

You can make any type of IRS approved real estate investment, including commercial, such as multi-family properties, residential, and land real estate.

With a Self-Directed IRA:

When you use retirement funds to purchase real estate, all income and gains the investment generates isn’t subject to tax or penalty. Instead of paying tax on the returns of the real estate investment, you defer payment to a later date, allowing the investment to grow unhindered. If you use a traditional IRA at a bank or financial institution, you likely won’t be able to use retirement funds to invest in real estate, because this institutions do not sell real estate as a financial product. But you can purchase real estate when you establish a Self-Directed IRA at IRA Financial.

Private Placements

Why Private Placement Investments?

Private placements is a great way to grow a business by selling securities or membership interests to a small group of investors. Such investors are wealthy accredited investors, large banks and pension funds. Private placements is popular among companies that need funds for a number of reasons, including to raise capital for their business.

With a Self-Directed IRA:

Why use personal funds when you can use your retirement funds to make a lucrative investment? By investing in private placements with a Self-Directed IRA, the income and gains the investment generates will be paid at a later date. When it’s time to “take home” your investment funds, you are more likely retired or partially retired and earning less than during your peak years. Thus, you are in a lower tax bracket and can keep more of the funds you earned over the years.


Why Cryptocurrency?

The cryptocurrency market is still very young, created in 2009, and many investors believe the future of Bitcoin and other alt coins is strong, thus a good long-term investment. Many investors see crypto as “the currency of the future” and it has grown in popularity among Millennials, as they feel more confident making cryptocurrency investments over stock market investments. However, it is still a risky investment due to its volatility.

With a Self-Directed IRA:

A Traditional IRA, established at a bank or financial institution, will limit your investment opportunities, so you won’t be able to invest in Bitcoin and other cryptocurrency with your retirement funds. At IRA Financial, we don’t limit your investments. By establishing your Self-Directed IRA with us, you will have the freedom to make cryptocurrency investments.

Tax Liens/ Tax Deeds

Why Tax Liens/ Tax Deeds?

Self-Directed IRA investments that offer real estate exposure without purchasing property is a winner, and that’s exactly what the purchase of tax lien certificates can do for investors. Tax lien investing is not for everyone, as novice investors can get easily burned. On the other hand, experienced investors can generate high returns on their investments.

With a Self-Directed IRA

Gain control over your investments when you establish a Self-Directed IRA with checkbook control. With checkbook control, also known as the Self-Directed IRA LLC, you don’t need custodial consent each time you make an investment. When you see an investment you want, such as tax liens or deeds, simply write a check or wire the funds from your LLC bank account and the investment is yours.

Precious Metals

Why Precious Metals?

With the current price increase of gold and silver, it is apparent that precious metals are still a valuable asset. Long before the current tension between U.S. and China trades, precious metal was seen as a safe investment that was attractive in many ways, such as the ability to act as a hedge against inflation.

With a Self-Directed IRA

Some banks and financial institutions may claim you can open a Self-Directed IRA with them, but this is not a true Self-Directed IRA. You will still be limited to the financial products they sell, therefore if you want to remove your funds to invest in gold and other precious metals, you may not be able to, because these institutions won’t make money that way. At IRA Financial, we offer a truly Self-Directed IRA, because we are a passive custodian and don’t benefit on establishing and administering your account. All investment decisions are yours.

Tax Benefits with a Self-Directed IRA

When you use retirement funds for investments, in general, all income and gains the investment generates is tax-deferred. We cannot stress this benefit enough! So rather than paying for the tax on the returns associated with the investment, tax is paid at a later date. This allows the investment to grow in your Self-Directed IRA unhindered. For cryptocurrency investments, purchasing crypto with a Self-Directed IRA has additional benefits due to the intense record keeping involved with cryptocurrency transactions.

Get in Touch

To learn more about the Self-Directed IRA LLC, we encourage you to read our free IRA Financial Self-Directed IRA info kit. This is the perfect place to start if you are interested in establishing a Self-Directed IRA LLC, or to familiarize yourself with the rules if you already have an account. Any questions, contact IRA Financial directly at 800-472-0646

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