Self directed ira asset classes

Self-Directed Investing Offers More than Just Real Estate

If you’ve already started investing with your Self-Directed IRA but haven’t ventured outside of the world of real estate, you might not be taking full advantage of this investment opportunity. Self-Directed IRA investing is more than just real estate, in fact there are several other asset classes you might be excited to learn about.

Why Diversify Your Self-Directed Portfolio?

Just because you’re completely in control of your Self-Directed IRA doesn’t mean your investments aren’t susceptible to market changes. If all of your investments are in real estate and the market crashes, interest rates skyrocket, or there’s another real estate bubble that pops, you could be faced with some under performing assets in your IRA. If that financial downturn happens liquidating the assets could be challenging as well.

Aside from mitigating the risk of your investments, there are some other potential benefits to diversifying your investment portfolio:

  • Find higher-return investment opportunities
  • Investing in a start-up company or small business you care about
  • Learning about different industries while trying your hand at portfolio management

Alternative Investment Options

Your Self-Directed IRA allows an abundance of investment opportunities that might not be possible outside of your IRA. Here’s a quick rundown of some of the alternative investment options you have when your account is held at iPlanGroup.

Foreign Currency

If you’re well-versed in global financial politics and news, then investing in foreign currency could be right up your alley. Knowing when to expand your portfolio and when to slim it down ahead of a big policy change could be your key to success. As with any investment, it’s important to invest where you are most comfortable.  Consider your learning curve and consult with those who have success in the asset class where you are looking to invest. If you’re not familiar with foreign financial politics in news, investing in foreign currency could be the motivation to educate yourself about foreign affairs.

Precious Metals

Did you know that in addition to investing in foreign (or domestic) currency, you can also invest in precious metals? Gold, silver, palladium, and more, are options available to those who wish to diversify their portfolio. You may find that precious metals offer the stability you prefer when investing with your IRA money.

Private Lending

In addition to investing in small businesses, you can also offer to hold debt for others. A Self-Directed IRA can loan money to small business owners or individuals who are looking to start a new project. Private money lenders are able to bridge the gap for business owners where a traditional lender could not perform. Investing in this way could mean literally being the change you wish to see in the world.

Checkbook IRA

And finally, if you’re very interested in taking control of your investments, you might consider opening a checkbook IRA. In this situation, you’d have full control over your investments and won’t have to pay high administration fees of a traditional IRA.

Want to Learn More?

Check out our new e-book, “Understanding Asset Classes” to learn more about alternative investment opportunities outside of real estate. Then contact the team at iPlanGroup to find out which options might best fit your financial goals.

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