Patricia McCrystal
August 17th, 2015
If you’ve decided to take the reigns of your retirement
account by self-directing your IRA, you more than likely already have an
alternative asset market in mind for your investments. However, if you’re ready
to try your hand at a new market in which you have little knowledge or
experience, it can be daunting to figure out how to shop for assets.
Below are some starting points to help you in your search
for alternative assets for your IRA. You can always utilize your existing
financial team, such as a CPA or financial planner, to receive advice about
potential asset markets to pursue. Feel free to call New Direction IRA with any
questions or for more information about your IRA’s investment options.
Precious Metals: Many investors who use their IRA funds to invest in
precious metals are already seasoned coin/precious metals collectors. As such,
prior experience in gold or silver can make investing your IRA account in
precious metals a fairly familiar process.
You are free to use your IRA savings to purchase metals from any dealer that
you may have a pre-existing relationship with. If you’re new to precious metals
investing, you can shop online for dealers with the best prices. Because your
IRA can only purchase bullion products, you may find it relatively easy to
compare the over spot price for each dealer.
Real Estate: IRA
account holders who already have experience investing in real estate can
utilize their IRA funds to continue their investment ventures. You are free to
use existing real estate professionals that you have used in the past to scope
out new investment opportunities for your IRA. Like precious metals, you can
shop online to buy real estate with your IRA.
Most real estate investors understand that you have to know
people in the local market to find investing opportunities. There are typically
real estate investor clubs in every big town; at which real estate
professionals can provide you with information about local property for sale
and can mentor you in the ways of savvy real estate investing. These real
estate investor clubs are a low-cost or no-cost way to receive information for
your IRA real estate investments. These clubs allow you to choose your role and
level of involvement in your local real estate investing market.
Private Lending: Finding
a private lending opportunity for your IRA is principally reliant on your
personal knowledge of borrowers in the market for a loan. You can originate a
loan for your IRA funds, or you can purchase an existing loan, usually at a
discount. There are online markets for peer-to-peer lending, peer-to-business
lending, and more. Some investors utilize a loan broker to partner their IRA
money with a borrower.
You may find real estate borrowers through a real estate
professional, or via online venues. You can also attend local real estate
networking groups to scope out private real estate lending opportunities.
Private Equity:
Private equity is the most individualized asset in which you can invest IRA
funds. Finding private equity opportunities is largely dependent on your
personal knowledge of promising new startup companies, or companies looking for
capital to fund new products. You can take advantage of your connections and
experience to identify auspicious private equity investments.
Although the asset types above are some of the most popular
choices of our clients, they are far from exhaustive. Call New Direction
toll-free today at 877-742-1270 to find out about the nearly endless list of
investment choices you have with your self-directed IRA. Visit our website to access
industry-best educational resources and learn more about the freedom and
control granted with a self-directed IRA. Happy investing!