Using a Self-Directed IRA to Diversify a Portfolio

Investment the SDIRA

When is an SDIRA the right choice?

When you are looking to invest in opportunities outside the traditional stock, mutual fund, and bond markets.

What Investments Can I Purchase Using a Self-Directed IRA?

There are several investment choices available to you when using an SDIRA.

  1. Real estate – Residential, Land, Commercial, Industrial, Multi-Family. These are all available to invest in when using a self-directed IRA. Understanding the rules and regulations of a SDIRA you should know the retirement SDIRA and most likely LLC own the real estate or a portion of the property. You as an individual cannot receive direct profits or income from the asset. The retirement account gets all the positives and negatives when using retirement funds for your real estate investments.
  2. Precious Metals – yes, go ahead and start purchasing gold bars and coins. You can use your retirement funds to hedge inflation by purchasing bullion. Like real estate, you cannot benefit from the investment directly. You must purchase using the funds from the account and you must store your investment with a qualified vault. No, you cannot keep the gold directly at your home and no you cannot use currently owned coins and bars and move them to your SDIRA. The Plug has a comprehensive guide on the Best 5 Gold IRA Companies and Birch Gold Group is a top choice in their eyes.
  3. Debt – yes, you can become a bank and lend your money for dept purchases. If you have a buddy buying real estate to flip, you can become his bank. Understanding the pros and cons are important when lending for debt purposes.

What Investment Can I Not Purchase Using a Self-Directed IRA?

You cannot purchase rare coins, art, or antiques. The IRS rules and guidelines for investing using your retirement account are strict.

When you start a self-directed IRA a custodian will be necessary. The trust or company you choose to use to open your SDIRA does not give investment advise. They manage and monitor the investments you are purchasing with your retirement account. They however are not the manager of those investments. You as the account holder must manage your investments and make sure they meet the requirements of the IRS.

How to Get Started Using a Self-Directed IRA?

Getting started with a SDIRA you must follow a few simple steps.

  1. Decide on which investments you would like to purchase
  2. Research and Decide on a TRUST Company or Precious Metals IRA Company
  3. Open Account
  4. Fund Account
  5. Purchase Investments

It’s that simple. The hard part is choosing the right company to work with.…

Better Investment Choices

Making good choices on your investments can seem daunting. But with the right focus in mind, you can quickly find the best options for your portfolio.

Consider alternative investments such as precious metals or real estate. Both provide assets that appreciate over time. While physical gold and silver don’t provide an income source, you have the option to use your gold as collateral and lend against your portfolio.

To diversify investment in real estate there are several options. Look at buying a home and remodeling it. Selling it after 12-24 months will keep your taxes lower. A good option for young adults is to house hack. Buy a property and rent the rooms. Have your roommates pay your mortgage and you can live for minimal or no costs. This option gets them to pay your mortgage while you get the appreciation. And in some situations, you could rent for more than your mortgage and have a side income.

The best way to diversify your portfolio is by using a self-directed IRA.

You might consider a self-directed IRA if you want to keep your money for retirement and not pay any taxes until you start taking distributions.

In a self-directed IRA you can buy gold and silver, lend debt to others, or even buy your next investment property. The opportunities are endless.…