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 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. As inflation rises, so does the price of rental income.
Private placements is a great way to grow a business is 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 the business.
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 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.
Cryptocurrency is another investment that has seen a recent comeback. Although a very risky investment due to its volatility, cryptocurrency such as Bitcoin has become popular among investors around the world. Its blockchain technology is also expected to revolutionize the way financial transactions occur globally. It’s no wonder Millennials feel more confident purchasing crypto than they do stocks.
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. 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.