Real estate. Precious metals. Money lending. Private equity. Alternative assets galore. There’s a lot you can do with a Checkbook IRA when you self-direct, but it also helps to know what each asset is—and how it might help you in retirement. Even better, it helps to know how to establish a Checkbook IRA so you can make quick, flexible investments in any of these asset classes. So let’s explore each of these alternative asset classes and discuss how investing with a Checkbook IRA can help you build a more flexible retirement plan for yourself.
Alternative Investment #1: Real Estate
Real estate remains one of the most popular options for Checkbook IRA investors. That’s for good reason. With the ability to purchase and manage real estate directly, you can acquire properties that may offer rental income or grow in value over time—often substantially.
There are lots of ways to diversify real estate, too. You might choose to buy residential rentals, commercial buildings, or even raw land. Investing in real estate with a Checkbook IRA lets you take full control over decisions, from choosing properties to setting rental terms.
Alternative Investment #2: Precious Metals
Gold, silver, platinum, and palladium are popular precious metals that you can hold in a Checkbook IRA. Investing in precious metals can be really attractive for those who want a hedge against inflation and economic uncertainty—which is typically most investors who want precious metals in their retirement account.
When you hold physical metals, you’re effectively diversifying with assets that have historically held value in turbulent markets. With a Checkbook IRA, you can even store these metals in a secure location of your choice, giving you flexibility in managing your investment. And because precious metals can give you a buffer against market volatility, they make an excellent complement to other assets in your portfolio.
Alternative Investment #3: Money Lending
Some investors love the control and potentially high returns that come with private money lending, which is another option in a Checkbook IRA. This strategy allows you to act as a lender, offering private loans secured by real estate, vehicles, or other collateral.
Why money lending? As the lender, you set the terms, including interest rates and repayment schedules, providing the opportunity to earn a steady income through interest payments. Money lending with a Checkbook IRA can be a particularly good strategy if you have expertise in evaluating creditworthiness or understanding loan structures.
Alternative Investment #4: Private Equity
A Checkbook IRA also opens the door to private equity investments. This includes buying shares in private companies, investing in start-ups, or participating in crowdfunding ventures. Private equity can yield high returns, especially if you’re able to identify companies with growth potential early on.
This option allows you to support industries or causes you’re passionate about. However, private equity often involves a higher level of risk and may require a longer investment horizon, so we recommend that you weigh your tolerance for both before diving into these opportunities.
Alternative Investment #5: Other Alternative Assets to Consider
Beyond the traditional options, a Checkbook IRA allows you to explore a variety of alternative assets that could add unique value to your retirement portfolio. Think about tax lien certificates, which can provide high returns, or commodities such as oil and gas, which can add diversity and hedge against inflation. You can even invest in foreign currency, livestock, and intellectual property. The flexibility of a Checkbook IRA lets you build a truly diversified portfolio by going beyond conventional retirement investments. Ultimately, the shape of that portfolio is up to you.
Want to investigate Checkbook IRA investing for the first time? Just give us a ring here at 844-8876-IRA (472) and we’ll be glad to help you out.
