Choosing the right investment for your portfolio can be challenging, especially in today’s economic climate and erratic stock market. People who use self-directed IRAs don’t like to rely on the stock market. They want to use investment alternatives to the stock market that have the potential to produce a healthy return regardless of whether the market is up or down. These individuals aren’t “expert” investors. They are normal, every-day people just like you. The only difference is they understand the value of making investment choices based on their own knowledge and expertise.
Invest in Things You Know and Understand
The beauty of this asset class is that there are nearly limitless options. As the self-directed IRA account owner, you can invest in things you personally know and understand. And, you might know a bit more than you think about how to find alternative investments for your self-directed IRA.
For example, if you own a house or rent an apartment, you have an idea of how to find and maintain either. So, you might consider investing in single or multifamily property. If you have a good head for business, investing in startups may suit you. If you’re familiar with farming or crops, you could consider those options. You can even breed and race thoroughbred horses or run an alpaca farm as investments in your IRA. Your choices are quite extensive, as we explained and listed in our blog a few weeks ago.
Once you understand how many possibilities exist—you’ll begin to correlate opportunities with your own knowledge. And, that’s when you’ll realize it’s not too hard to find investment alternatives to the stock market for your self-directed IRA. But, as promised, below are a few places you can start.
10 Ways You Can Find Investment Alternatives to the Stock Market
1. Talk to fellow investors.
Maybe the investors you know invest in things you aren’t interested in. However, don’t count them out. They may know others with knowledge of assets you’d consider.
2. Ask your friends.
If you don’t know any investors, ask your friends. They may have investor friends they can introduce you to.
3. Contact investment brokers.
You can use traditional assets in self-directed plans if you like. But even for alternative investments, a broker can help educate you in what’s available.
4. Join local investor clubs.
Many cities have investing clubs that meet weekly or monthly. Local Real Estate Investment Associations (REIAs) are great. But, other clubs, like MeetUp, do exist and should be easy to find in your area.
5. Take a drive.
If you know of areas with good rental or rehab potential, go have a look. Some of the best real estate assets can be found on Sunday afternoon drives.
6. Research real estate syndications.
Syndications allow you to pool funds with other investors on real estate ventures. Your local clubs, real estate professionals, and investment brokers can help you locate a reputable one.
7. Visit real estate websites (Zillow, Trulia, etc.).
These are fun to surf and discover what property is available and where. Use the filters in the sites to drill down on the exact types of property you’re looking for in the price range your IRA can afford.
8. Work with a real estate professional.
This is their niche. They know the inventory locally as well as in other areas. They can keep an eye out if they know what you want.
9. Explore online platforms.
There are many platforms for peer-to-peer lending and cryptocurrency investing, along with other options. Just make sure the one you choose allows investments in self-directed IRAs.
10. Check out live and online auctions.
Here you’ll find real estate that is up for grabs due to non-payment of property taxes and mortgage foreclosures. You can place a bid to acquire tax liens and deeds and/or acquire foreclosed property at reduced prices.
Hopefully, these ideas give you a good starting point. Your search for investment alternatives to the stock market may be easier than you think after you put some of the above suggestions in perspective.
How Advanta IRA Can Help
Self-direction gives you complete freedom to choose your own assets. You control all decisions every step of the way. But that doesn’t mean you have to go it alone. You can draw on the knowledge of some of the professionals mentioned above, and you can also rely on Advanta IRA as your self-directed IRA administrator.
We serve clients across the nation who invest their IRAs and solo 401(k)s in a multitude of alternative investments to the stock market. Our clients also self-direct education savings accounts and health savings accounts. We’ve been doing this since 2003, our costs for self-directed IRAs are competitive, and our streamlined process is convenient and easy.
You get a single client account manager who helps you every time you invest. And, we make sure the investment process and administrative details are in compliance with IRS rules and regulations. We also offer weekly workshops and webinars to teach you more about self-direction and investment alternatives to the stock market that you can use to build wealth for your retirement.
We also host a virtual investor marketplace and networking event that links like-minded investors together to pitch their own alternative investment opportunities. Pitch, Promote, & Prosper is one of our most popular events and we encourage you to attend so you can see that assets off the stock market are not too hard to find.
So, what are you waiting for? Contact Advanta IRA to learn more today.
This article was initially published on February 25, 2020, and has been updated to include current information.