You can do more with a Checkbook IRA than just make quick real estate investments. Yes, real estate is one alternative retirement asset class for which a Checkbook IRA makes a lot of sense. But when you explore the full power and potential of Checkbook IRAs, you’ll realize there’s a big universe of potential retirement investments out there. So what’s included? Let’s explore some of the lesser-known alternative investments available.
What Kinds of Alternative Investments Can You Hold?
Real estate. Precious metals. Private companies. These are all great retirement assets, including all sorts of fantastic opportunities for your retirement when you invest with a Self-Directed Checkbook IRA. But as we stated above, that’s not what you’re limited to. While you can’t hold certain “assets” like life insurance or private collectibles such as wine or art, you can hold the following investments in an IRA:
- Auto paper: With a Checkbook IRA, you can invest in debt obligations tied to automobile financing, tapping into the steady income stream generated by car loans.
- Commercial paper: Use your Checkbook IRA to purchase short-term debt issued by corporations, providing liquidity and the potential for competitive returns.
- Convertible notes: Invest in convertible notes, which offer the stability of debt with the upside potential of converting into equity in promising companies.
- Royalty rights: Participate in royalty streams from intellectual property or natural resources, earning passive income from music, patents, or mineral extraction.
- Equipment and leases: Finance equipment or leasing arrangements, allowing you to diversify your portfolio while benefiting from predictable lease payments.
- Cryptocurrency: Trade or hold digital assets like Bitcoin or Ethereum, taking advantage of the rapidly growing cryptocurrency market within your retirement account.
- Commodities: Invest in tangible goods like gold, oil, or agricultural products to hedge against inflation and diversify your retirement portfolio.
- Rights and warrants: Purchase rights or warrants, giving you future opportunities to buy securities at a predetermined price and maximize potential gains.
- American Depository Receipts (ADRs): Expand your portfolio globally by investing in shares of foreign companies traded on U.S. exchanges through ADRs.
- Farms: Acquire agricultural properties to generate income through farming leases or capitalize on land appreciation over time.
Why Choose a Self-Directed Checkbook IRA For These?
One of the key benefits of a Self-Directed Checkbook IRA? It removes the middleman. You’re no longer relying on a custodian to process transactions for every investment decision you make. With checkbook control, you can make direct investments. Maybe you want to start purchasing cryptocurrency, investing in convertible notes, or acquiring rights to royalty streams. With a Checkbook IRA, you can.
This process makes it easier to seize investment opportunities as they pop up. This ability to move quickly can give you a competitive advantage. Or sometimes you can just enjoy the convenience that comes with speed.
What’s more, a Self-Directed Checkbook IRA offers tax advantages that can make your investments even more appealing. Opt for a Traditional or Roth Checkbook IRA, for example, and you’ll benefit from tax-deferred or tax-free growth, respectively. As the market for alternative investments continues to change, your Self-Directed Checkbook IRA gives you the freedom to adapt and diversify your portfolio in the way you see fit.
Of course, there is a risk with every investment. And the only “catch” here is that you’ll have to take on the risk of making investments as you see fit. But for many investors—particularly those with experience or a knack for finding the right opportunities—that’s the name of the game.
Want to find out more about starting up your Checkbook IRA for the first time? Contact TurnKey IRA at 844-8876-IRA (472) for a free consultation. Download our free guide or visit us online at www.turnkeyira.com.
