Alternatives investments are a great way to not onl diversify, but to also get a twist on a familiar investment. Some alternative investments are brand new, and others are simply weird. The best part about using a self-directed IRA to invest in alternative assets is you don’t have to be the smartest or the richest person to invest in them. Alternative assets give everyday investors the freedom to invest in things they know and understand.
So what are some of the hottest investments to be on the lookout for your SDIRA in 2021?
Private Companies that are Making a Difference
All across the globe, now more than ever, people are coming together for the greater good. There have been countless startup companies and small businesses that have private stock. Self-directed IRAs can easily invest into private entities with a few easy steps. The beauty of investing in a small company is that you typically don’t have to have a lot of money to get involved, and you can see the social impact your investment is having on the local economy.
Real Estate, Real Estate, Real Estate!
We can’t say it enough. Real estate is one of the best investments you can hold in a self-directed IRA, because not only is it a tangible investment, it also has some level of security that other investments (like stock) don’t have in the event of a worst case scenario. With lockdowns and work stability in question for many, the flexibility of real estate investing allows investors the chance to start taking control of how they make money! Partnering your personal funds with your IRA funds to purchase real estate can be a great way to make money now and for the future.
One of the most uncommon, but hottest, alternative investments is farmland. The great benefit of investing in land or farmland, is that you don’t have to have a lot of money to get started. Some investment platforms allow for a minimum investment of $10k, and there are companies that can help you understand and get started. If you have always wanted to be a rancher at heart, now is your chance!
Loan, Don’t Own!
In a study released late last year by MarketWatch, private lending was projected to grow by 30%. It is safe to say this alternative investment strategy isn’t going anywhere, and can be another top investment for 2021. Private loans are great for the investor who may have a lot going on and just wants to be passive, watching their money grow for them with interest going back to their IRA accounts. Not only are investors earning money for retirement, they are also providing an opportunity to someone who may not have been able to get a loan from a traditional bank.
Invest in YOURSELF!
We’ve saved this for last, because it’s probably the most important one. This is the year to invest in yourself. Whether that means making a contribution and growing your account at a steady pace, investing into something that you might not have once thought about, or just taking the time to utilize free educational resources to expand your knowledge, this is the year you take control of your money goals. To learn more about how to get started investing with a self-directed IRA, schedule a 1-on-1 consultation with an IRA Specialist by clicking HERE.