What sorts of assets/investments are on the self directed IRA menu that aren't available otherwise (in a "regular" IRA)?

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corp_sharecropper
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Joined: Thu Nov 07, 2013 2:36 pm

What sorts of assets/investments are on the self directed IRA menu that aren't available otherwise (in a "regular" IRA)?

Post by corp_sharecropper »

I can't envision a scenario where I'd go through the trouble of establishing a self directed IRA but I'm curious about some the assets/investments that are possible and do cause people to have such accounts. Does anyone have some good general (or specific anecdotes) of the sorts of things that would only be possible to hold in a self directed IRA as opposed to regular old Roth/traditional IRA?

Also, am I completely off base in thinking establishing this kind of IRA and managing the investments is a big hassle these days?
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David Jay
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Re: What sorts of assets/investments are on the self directed IRA menu that aren't available otherwise (in a "regular" I

Post by David Jay »

My son just bought a home that was a single family rental held in a trust for a self-directed IRA.

Not recommending it, you are not allowed to add value to your IRA by personal labor, so you have to contract everything (even unplugging toilets) to outside contractors. But it is a use for a self-directed IRA.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
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Ralph Furley
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Re: What sorts of assets/investments are on the self directed IRA menu that aren't available otherwise (in a "regular" I

Post by Ralph Furley »

I know a couple who max out their Self Directed SEP IRAs each year and invest the money in apartment buildings. I recall them telling me nearly 10 years ago that when they retire, that IRA will provide over $500,000 in annual cash flow (with additional growth through principal appreciation). The market they were in has exploded since then, so I imagine the number will be even higher. Hard to do that in an IRA with index funds.
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