Investment Ideas for a $10,000 Self-Directed IRA

Estimated reading time: 2 minutes(Last Updated On: August 14, 2019)

For most individuals who are saving for retirement, the process of building a large nest egg is one that happens over many decades. It can sometimes be difficult to fully appreciate how smaller contributions can ever grow into a large retirement fund.

In large measure, the key to growth is consistent saving and investing. For example, let’s say this you’ve rolled over a small 401(k) balance from a prior employer, or that it’s January or February and you’ve just made your annual contributions for the prior and current tax year, and you now have an additional $10,000 in your self-directed IRA to work with. What are some investment ideas for that $10,000?


Private Debt. Private debt instruments are another investment type that can be a great way to put $10,000 to work within your self-directed IRA. You might choose to originate a loan to a homeowner for a second mortgage, or to a small business owner looking to expand. Again, among all the various retirement savings options you have, you’ll only be able to make these types of investments with a self-directed IRA. As with all investments, be sure to document any private loan deals properly, in order to protect your interests.

Dividend-Paying Stocks. Finally, just because you have a wide range of investment options available to you with a self-directed IRA doesn’t mean that you should automatically seek out the least common or most volatile investment types. Dividend-paying stocks of publicly traded companies, for example, can be a great way to generate income within a self-directed IRA.

This income stream will allow you to make other investments, or to reinvest in additional dividend-paying stocks, thereby boosting your stream of income even further. Unlike receiving dividend income in a taxable investment account, you won’t have to pay tax for such investments within a self-directed IRA.

Deciding how best to invest $10,000 within your self-directed IRA will depend upon a wide range of factors relating to your individual financial situation. But regardless of your situation, you’ll have a wide range of investments to choose from.

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