How to Create Multiple Income Streams for Retirement with Self Directed IRA

Estimated reading time: 3 minutes(Last Updated On: June 15, 2020)

The benefit of a self-directed IRA is that it opens up the possibility to invest in opportunities outside a traditional IRA. IRAs at traditional financial institutions generally limit you to stocks, bonds and mutual funds. Self-directed IRAs allow you to invest in real estate, private equity, mortgages and other loans. Quest Trust Company, Inc. has wide-ranging experience in non-traditional investments, and can provide you with top-notch administrative support and education for your self-directed IRA.

You can use these non-traditional investment opportunities to create multiple income streams. Each of these income streams thus contributes to the growth of your overall retirement savings.

Why Create Multiple Streams of Income?

Multiple streams of income offer a number of significant benefits. They allow the retiree to feel safe, secure and confident as to how income will be generated in retirement. Income streams are recurring and thus allow people to feel comfortable that this will help with stress relief in retirement.


When it comes to saving money for retirement, it’s never a good idea to put all your eggs in one basket. If that particular market suffers, so does your entire savings, as people saw in 2008. On the other hand, when you invest in a variety of opportunities if one suffers a setback, you still have the other investments to rely on. We have experience providing advice for a broad spectrum of investments, from oil and gas to precious metals. Diversifying into non-traditional investments like these are a critical component of any healthy self-directed IRA.

More Money, Potentially

When you’re able to make quick investment decisions, as you can with a self-directed IRA, you can capitalize on potentially lucrative opportunities. Additionally, because a self-directed IRA makes it possible to invest in real estate and private equity, you can potentially earn a better return on your investment.

More Security

While no investment is without risk, using a portion of your existing retirement savings to open a self-directed IRA can in fact potentially reduce your overall risk. It goes back to diversification. You’re not relying on one market or industry to support your retirement. Instead, you can turn to several different investments to grow your savings.

What Are the Possibilities?

There are an abundance of investment opportunities with self-directed IRAs.  While collectibles, life insurance, and certain other tangible personal property investments are not allowed, you can invest in:

  • Commercial real estate
  • Rental properties
  • Farm land
  • Mortgage notes
  • Private loans
  • Private Stock
  • Public Stock
  • Franchises
  • Real estate flipping
  • Securities
  • Foreclosed properties and tax liens
  • Vacation properties
  • Precious metals
  • Oil & Gas
  • Live Stock – Cattle & Horse
  • And a whole lot more

For example, you can buy farm land and rent the farm land to local farmers. The income you generate will grow your retirement savings and create an income stream. You can also invest in a new business. When they become profitable and begin paying dividends you grow your retirement savings and create an income stream. You can also lend money to people and the interest you earn on the loan grows your retirement savings and create an income stream. Each of these investments has the potential to generate a regular stream of passive cash income.

Multiple income streams add security to your retirement savings and life. Instead of watching your IRA grow at a snail’s pace, or worse, lose money, you can watch your self-directed IRA grow quickly. Contact Quest Trust Company, Inc. to help you take control of, and grow, your self-directed IRA.