Little-known retirement account option
As far as retirement accounts and savings are concerned, most Americans have been conditioned to invest their hard-earned 401(k), 403(b), TSP, IRA, or other retirement plan in stock market-based products like mutual funds, ETFs, and fixed-income B-bond assets. Some may have an option to “self-direct,” but they are limited to publicly traded securities.
There is, however, an account referred to as a self-directed or alternative asset IRA. Don’t confuse this with what you will find in the law books: It is not a legal term, but rather an industry term.
Most financial companies will only allow you to invest in stock market-based products with an IRA or other retirement account. There are specialized financial firms, like Equity Trust Company, that focus on assisting clients with investing beyond the stock market and into income-producing alternative assets like real estate, notes, private equity, gold and silver, cryptocurrency, and much more.
In other words, you can regain control of your retirement savings and no longer be at the mercy of the traditional markets. Some investors like to refer to this as migrating from Wall Street to Main Street investing.
More options for alternative investing in an IRA
A challenge some investors face is identifying and executing on alternative asset investing. I often hear: “The idea sounds great in theory, but if I have no experience or access to alternative investments, what are my options?”
The good news: technology has advanced quickly since The JOBS Act of 2012, paving the way for more investors to get involved with startup and crowdfunding investments – opportunities once limited to ultra-wealthy, accredited investors. Now there are a variety of platforms and forums to help the average investor locate capital-raising opportunities that suit them.
Interested in this alternative asset as a diversification strategy, but not sure where to start? Check out Equity Trust’s marketplace-style gateway to potential options at InvestmentDistrict.com.
About John Bowens
John Bowens is one of the most sought-after and respected educators in the self-directed IRA industry, partly due to his unique ability to take a complex issue and break it down into simple-to-understand terms. Currently Director, Head of Education and Investor Success at Equity Trust Company, John draws from his 15 years in the real estate industry and his experience as an active real estate investor. In his travels across the U.S. and virtually, he has trained 60,000 investors during more than 300 workshops and classes, spreading the message about the power of building tax-free wealth and leaving a lasting legacy by investing in what you know best.
John contributed to the book “Self-Directed IRAs: Building Retirement Wealth Through Alternative Investing” with Equity Trust Company Founder Richard Desich, Sr., and has appeared on several national real estate and finance-related radio shows, including the Rich Dad Radio Show.
1How do I set up a self-directed retirement account?
To set up a self-directed retirement account with Equity Trust visit myEQUITY and start the process today. You can also visit How to Get Started for more information. Or simply schedule a free, one-on-one consultation with an Equity Trust Senior Account Executive.
2How do I find an investment for my self-directed IRA?
It’s easier than ever to locate a potential investment opportunity that suits you. Visit Investment District, our online marketplace, to browse investment options from cryptocurrency, lending, precious metals, private equity, and real estate asset providers.
