Many Americans think that the only IRA investments allowed in the retirement account include stocks, CD’s and mutual funds. But the truth is that there are more IRA investment options that are available to the public. In order for an individual to fully maximize their IRA investment options they will need a retirement plan that allows them to select their own IRA investments. The fully self directed IRA retirement plan allows one to the freedom to invest in many types of investments in assets that are not prohibited by the U.S Treasury Department Regulations and the Internal Revenue Code.
1. Precious Metals like gold, platinum, silver are among the precious metals that an individual can invest in for their IRA retirement plan. The company chosen by the individual in this case will cat on behalf the individual as the self directed IRA administrator, the company has to be equipped to handle all the unique requirements involved with holding of precious metals in the individuals retirement plan, their duties include arranging for storage in a depository institution that the individual has chosen, they also have to do the valuations for the purposes for IRS (Internal Revenue Service) reporting and do the account administration for the individual.
2. Limited liability companies- This is also a great option for an individual to partner with, the Limited Liability Companies have to purchase investments. This is a legal company that will provide the individual with tax advantages of partnership while limiting all legal liability of the individual partners in the same way any other corporation does.
3. Private Limited Partnerships- This type of investment involves many individuals. A partnership is unincorporated business organization where multiple individuals are referred to as general partners, in this case they manage the business equally and are also liable for the debts of the business. Limited partners are allowed to invest in the business but are not directly involved in the management roles of the business. For limited partners in such an investment are only liable to the extent of their investments. This partnership does not pay any form of income taxes but every partner is required to report their share of business profits or losses on their individual tax return.
4. The Unsecured and Secured Notes- This type of investment involves secured notes which are backed up by collateral, and they also provide the lender increased assurance of repayment of the loan, and interest these include mortgages and deeds of trust. Whereas the unsecured notes do not have any collateral but have a higher risk and sometimes reward.
5. Real Estate investments- Many people are familiar with this type of investment option for an IRA. This type of investment overtime has afforded many individuals with the combination of appreciation and income. This is a very popular choice through the self directed IRA. Individuals have the freedom to invest in single family, multi-unit homes, apartments buildings, condominiums, commercial property and some much more that falls in the non traditional assets category.
6. Publicly traded stocks, bonds and mutual funds is also another great way for one to invest. There are so many other options that an individual can choose from when planning to invest with their IRA. It is advisable to consult with financial planner or a tax adviser on how to choose the best investment option for an IRA.