In honor of this past weekend’s running of the Kentucky Derby, the “Run for the Roses”, it seemed fitting to highlight one of the more unusual possibilities available with a self-directed IRA.

During a recent conversation with Rajeev Kotyan and Laurie Bachelder of NUA Advisors, LLC, the topic of unusual self-directed investments came up.  You see, Rajeev and Laurie specialize in creating truly diversified investment portfolios.  They typically create a balanced mix of traditional and non-traditional investments tailored to each individual client’s goals and interests.  They also specialize in self-directed IRAs.

When researching possible investments and risks for a client, no stone is left unturned.  With one particular client, they went for quite a ride.

This client, you see, had a passion for dressage horses.

The idea behind the investment was to take advantage of breeding and training differences between Europe and the United States with dressage horses.  Due to the nature of the business, the same horse may have quite different values depending on where it happens to be.

In Europe, a well trained horse may sell for the equivalent of $40,000.  When brought to the U.S., the market demand upwards $80,000! (NOTE: Representative numbers from client’s business plan)

This kind of self directed IRA investment certainly brings up many questions.

• How do you transport the horse?
• What will medical care cost?
• What will food cost?
• Where will the horse be housed until sale?

For someone who has experience and a passion for dressage horse though, these questions are answered easily. Structured properly, this investment can benefit a person’s IRA just as easily as a stock or bond.

Even if horses are not your investment of choice, there is bound to be something you have a passion for that you can invest in to benefit your future.

That’s the beauty of a self-directed IRA, it puts the reins in your hands, allowing you to guide your retirement with your specific knowledge.

To find out how you can put your passion to work for you, contact a Retirement Plan Specialist at 1-888-382-4727.

Related posts:

1. The New Diversification: How Self-Directed IRAs Can Boost Your Portfolio
2. Back to School with Equity University, Part III: A Crash Course in Self-Directed IRA Investing
3. Start 2010 on the Right Foot – Avoid IRA Prohibited Transactions

Filed under: IRA Education, Investment Opportunities, Managing Your IRA, Saving for Retirement, Uncategorized, self directed IRA on May 5th, 2009