Exploring Alternative Investments with a Self-Directed IRA
It’s easy to think of retirement investing as a checklist. Open an IRA. Pick a few mutual funds. Cross your fingers, wait 30 years. But for a growing number of investors, that traditional model doesn’t feel quite right. They want more control and more options. That’s where a Self-Directed IRA comes in, and it’s why alternative investments are getting a lot more attention.
Alternative investments aren’t new. In fact, many have been around longer than the stock market itself. Real estate, precious metals, private loans—these are assets people have trusted for generations. With a Self-Directed IRA, you’re not just allowed to explore these options. You’re encouraged to think outside the box and build a portfolio that reflects your goals and expertise.
What Counts as an Alternative Investment
In Self-Directed IRAs, “alternative” really just means “not public stocks or funds.” These so-called alternative assets can include physical real estate, undeveloped land, private companies, tax liens, oil and gas royalties, and other off-the-beaten-path assets. As long as the asset fits within IRS guidelines—and isn’t something you personally use—it’s possibly an asset you can hold in retirement.
For example, a rental home purchased through a Self-Directed IRA can bring in steady income that’s tax-deferred or tax-free, depending on the account type. A private note secured by real estate could provide monthly payments to the IRA. Gold bars held in a qualified depository can offer a hedge against inflation. These aren’t theoretical gains. They’re real-world assets with real-world returns—and they’re fully accessible within a Self-Directed IRA structure.
The point isn’t just to be different. It’s to be deliberate. Alternative investments give you the ability to design your retirement plan around the kinds of assets you believe in. And if you’re someone who’s spent years developing expertise in real estate or private finance, this flexibility can be something like a natural extension of your experience.
What to Watch Out For
Of course, great flexibility requires real responsibility. You can’t use your Self-Directed IRA to buy a beach house and rent it to your sister, for example. You can’t invest in your own business. And you can’t personally guarantee a loan made through the IRA. These are considered prohibited transactions, and breaking the rules could lead to taxes and penalties that eat into your savings.
That’s why having the right structure (and the right support) still matters. At TurnKey IRA, for example, we help you navigate the setup, paperwork, and compliance so you can focus on choosing the assets that fit your vision. Whether you’re just starting out or looking to move an existing IRA into a more flexible format, we can help. And we can make the process straightforward and accessible.
It’s also important to do your homework. Unlike a mutual fund, which comes with a prospectus and a professional manager, alternative investments often require hands-on research. You’ll want to understand the risks, vet the opportunity, and make sure you’re not overexposing your portfolio to any single asset class.
Why Alternative Investments Work for the Right Investor
Alternative investing isn’t for everyone, true. But for those who want to play a more active role in their retirement planning, it opens a door to greater customization and potential. You’re not tied to the market’s mood swings. You’re not waiting on a fund manager’s quarterly review. You’re building something that reflects your knowledge, your values, and your long-term goals.
And that’s what makes Self-Directed IRAs such a powerful tool. They don’t just give you new investment options, but a way of taking more ownership over your future.
Interested in making this work with a Checkbook IRA, or a Self-Directed IRA LLC? Reach out to us here at TurnKey IRA by dialing 844-8876-IRA (472) and explore a new future of retirement investing. Interested in learning more? Schedule a free consultation. Download our free guide or visit us online at www.turnkeyira.com.
