Earn Tax-Free Income with Alternative Assets in Your IRA

You work hard for your money. Why not have more control over where it’s invested? With an Advanta self-directed IRA, you can break free from conventional investing that is limited to stocks, bonds and mutual funds. Adding alternative assets to your portfolio can help you earn tax-free income in your IRA, and this diversity can also help protect your retirement wealth.

Man with pepper gray hair looks at his computer screenSelf-directed IRAs give account owners the freedom and flexibility to make their own decisions on how to invest their retirement funds. When you take that control, you can select a wide variety of alternatives based on your own understanding of different assets. Alternative options reach far beyond the typical stock, bond or mutual fund offered by mainstream retirement custodians. This asset class includes real estate, precious metals, private placements, foreign currency and futures trading and many other diverse holdings that can grow tax-free income in your retirement plan. The objective is to invest in what you know best to build a secure income for your future.

Investing in what you know best

When you rely on your own experience, you would be pleasantly surprised to discover the alternative investments that are permissible in self-directed IRAs. If your background is in real estate, maybe acquiring property for resale or rental income interests you. You can use retirement funds to invest in apartment buildings, condos, commercial property, single family and multi-unit homes, tax lien certificates and deeds, and private mortgage notes.

If you have a solid background in business, you might consider investing in private placements and stock, a business or an LLC. These options are especially appealing for both investors and business owners. Traditional lenders have made it harder to qualify for loans, but those seeking capital can receive it from private sources (such as your self-directed funds). Your IRA earns tax-free income if the investment succeeds, creating a desired win-win situation for all involved.

There are varieties of ways you can use your expertise to invest. Start by thinking outside of the box. Are you interested in precious metals? Oil and gas options? Timberland? Foreign land? Horse farms? Hedge funds? Go for it! You’ll find there are many other alternative assets available when you rely on your experience and begin exploring possibilities that interest you.

Alternative assets prohibited by the IRS

While self-directed IRAs allow for more diversity in your portfolio, they can also contain traditional stocks, bonds, and mutual funds. But, you can’t invest in everything. The IRS has defined a few prohibited holdings you must avoid purchasing with retirement funds. Antiques and collectibles such as furniture, baseball cards, cars, art, fine jewelry, wine, etc., as well as life insurance contracts, are not permissible in your self-directed plan. Other than that, the opportunities are nearly endless as long as you invest and maintain your account within IRS regulations.

It is imperative that you understand self-directed account owners are responsible for identifying their own investments—and ensuring they are compliant with rules set forth by the IRS. Ultimately, you are in charge of your own decisions and transactions, which can produce benefits as well as risks when investing. Choosing the right self-directed retirement plan administrator, financial advisor, and tax professional to work with helps ensure your account operates in compliance with all regulations. But, it is your responsibility to educate yourself about the process, perform due diligence, and investigate the risks and benefits involved.

Learn about the power of self-directed IRAs

Advanta IRA is a self-directed IRA administrator serving clients across the nation who hold over $800 million in assets. We make no commission, and we do not sell investments. We do ensure that the administrative details of your self-directed IRAs are in compliance with IRS standards.

The team members at Advanta IRA also offer webinars and seminars designed specifically to teach investors of all levels about self-direction and the wide world of alternative investments. These courses are offered at no cost to attendees. Our goal is to empower people who want to take control of their own retirement funds and learn how to earn tax-free income in an IRA. Knowledge is power, so the more you know, the better your chances are in achieving financial freedom for your retirement years.

Take control. Choose your own investments. Grab the potential to secure financial freedom when you retire.

Contact Advanta IRA for a free consultation today.

If you have questions about this article and want to learn more about alternatives that can help grow income in your portfolio, call us at (800) 425-0653 or send us a message.

About Scott Maurer

Scott Maurer, Vice President of Sales for Advanta IRA, is a recognized expert in the field of self-directed IRAs. With a law degree from the University of Florida and as a designated Certified IRA Services Professional (CISP), Scott’s keen understanding of rules and regulations fuels his passion to educate others on the power of investing in alternative assets using self-directed IRAs. Scott is a frequent guest on retirement and investing webinars and podcasts, and he has shown thousands of individuals how to achieve financial freedom by teaching them how to use their retirement funds to invest in private placements, real estate, private lending, and more. Throughout his two decades in the industry, he has watched numerous unique investments unfold, giving him great perspective of what is possible when people take control of their retirement funds and investing decisions.