The best options to invest your IRA contributions

Estimated reading time: 2 minutes(Last Updated On: August 13, 2019)

When planning for the future, one of the many options for contributing towards your retirement is an IRA. Both traditional IRAs and Roth IRAs offer secure and tested options to save for retirement. But you may want to consider taking advantage of the investment possibilities these accounts have to offer.

Instead of leaving your contributions in a cash or money market account, invest it through a Self-Directed IRA. It’s possible to invest in private equity, oil and gas and even real estate, amongst other options. There are limits to each of these options, but also great potential benefits.

Real estate

With Self-Directed IRAs allowing you the freedom to invest in markets you already understand, real estate is a familiar investment opportunity. This familiarity may be one of the biggest benefits because it grants more confidence to investors and therefore opens up opportunities.

Another potential plus of purchasing real estate with a SDIRA is tax benefits. Your investment gains remain tax-deferred or tax-free even on withdrawal, in the case of a Roth IRA.

Of course, even with the familiarity a common investment like real estate offers, having a knowledgeable custodian of your IRA is still necessary to navigate the complexities of the IRS tax codes for these investments.

Private equity

Private equity is allowed as a penalty-free asset and keeps the same tax benefits of a traditional or Roth IRA.

Because the same public disclosure laws that govern public entities don’t govern private entities, the investor can use their knowledge and experience to choose which companies they would like to invest in, offering freedom of choice as well.

Oil and gas

A Self-Directed IRA can also be used for energy investments. Beyond just commodities, investments can be made in land being explored for gas and mineral extraction, as well as the mineral rights. Obviously, these investments have the potential to pay off in a big way.

You can also invest in alternative energy such as wind and solar, geothermal energy and hydroelectric energy. The benefits of these markets are that they are bound to grow in the future and over time.

Diversifying to grow your retirement account and choosing the right financial institution can pay off in a big way. Learn more from the trusted experts at Quest Trust Company and start making the most of your IRA by opening a Quest account today.

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