Investments that Come ‘Naturally’

By Elsie Dudukovich0 Comments
 
Every demand, every resource brings possible consideration for investment potential.  Self-directed IRAs allow investors to research the potential of traditional and ‘new’ investment opportunities to grow their retirement savings.  
  
Timberland
Don’t let slow growth deceive you; timber is a natural resource you can consider investing in.  Trees are planted and harvested within 15 to 30 years depending on the type.  Harvesting is a step towards providing income and appreciation, which occurs when they are sold. Trees can be considered soft woods, such as pine, or hard wood, such as cherry oak or maple.  
  
Raw Land
When it comes to real estate, consider expanding your investment research beyond houses and other structures to raw land.  As with all investment opportunities, it is important to perform due diligence before investing in raw land the specifics to the type of land under consideration.  It is important to note that like many alternatives, these investments are illiquid and carry additional risks.
 
10 general categories of potential land investments:
  • Residential development land
  • Commercial development land
  • Row crop land
  • Livestock raising land
  • Timberland
  • Mineral production land
  • Vegetable farm land
  • Vineyards
  • Orchards
  • Recreational land
Mineral Rights
Mineral rights apply to all types of resources, such as oil and gas, ores and metals or other raw materials.  From Geology.com, minerals can also be ores or metals, dimension stone, construction aggregate, salt, and gemstones, but cautions there “is no definition of "mineral" that applies in every situation and what is considered to be a "mineral" can vary from state to state and even change over time.”
 
Water
We learned in grade school that about 70 percent of the planet is covered in water – yet did you know only 2.5 percent of it is fresh water? Even more precarious, the United States Geological Survey’s (USGS) Water Science School informs us that barely 1 percent of freshwater is actually accessible to our entire world population. 
 
Investors can invest in water in a variety of ways, such as:  
  • Shares in utilities
  • Infrastructure (water pipe, systems, etc.)
  • Other firms/companies that provide services/support to water companies, utilities, fracking, etc.
Get more details on the possibilities of investments in a self-directed IRA - schedule a one-on-one consultation with a Senior Account Executive.