Self-Directed IRAs Alternative Asset Management
With J.D. Cowan & Company,LLC., “Self-Directed” does not mean “you’re on your own.” What is does mean is investors can include a much wider array of assets in their Individual Retirement Account (IRA) portfolios. There is a misconception that traditional investments are the only options for retirement plans and that retirement accounts are only offered by large Wall Street investment firms.
The fact is that ever since IRAs were first established by Congress in 1974, the Internal Revenue Code has allowed them to include a broad range of non-traditional investments. Unfortunately, few custodians have developed expertise in alternative investments and only offer retirement accounts that focus on stocks, bonds, mutual funds and CDs. These custodian relationships are what investors find in typical “brokerage firms” and even with most “independent advisors.”
Investors are searching for new ways to diversify beyond traditional investments and spread risk to optimize their portfolios. Why not take advantage of all the tools available? A record number of investors are now using IRAs to invest in alternatives, with the added benefit of a tax-free or tax-advantaged status.
Here are a few examples of non-traditional investment options:
- Private stock offerings, private placements
- Private limited partnerships, limited liability companies and C corporations
- Residential and commercial real estate
- Undeveloped or raw land
- Real estate notes (mortgages and deeds of trusts)
- Tax lien certificates
- Promissory notes
- Foreign currencies trading accounts
- Oil and gas investments
- Gold, silver, platinum and palladium bullion.(which meet minimum fineness requirements)
- Auto finance notes
- Equipment leasing
- Factoring investments
- Accounts receivable
- Judgements/structured settlements
- Much more…