Investing with Retirement Funds
Have your retirement funds been limited to stocks?
In addition to cash, self-directing retirement funds is a great way to invest in alternative assets and diversify your portfolio.
Learn More
On Our Affiliate, ADVANTA
There are literally millions of people right now who have their entire retirement sitting in the stock market.
They have no idea that they can:
Use self-directed IRAs to invest in alternative assets like real estate.
Access investments that are safer than Wall Street and typically yield considerably higher returns.
Earn passive income on recession-resistant real estate investments, all without the headaches of being a landlord.
For the sake of their futures and their families’ futures, it’s important for them to at least know they have options
Self-Directed IRA
A self-directed IRA is a type of traditional or Roth IRA. The difference is the type of assets you can own in the account. It allows you to save for retirement with assets that are traditionally off-limits for standard IRAs, including alternative investments. With regular IRAs, your investment options are limited to approved securities like stocks, bonds, exchange-traded funds (ETFs) and mutual funds.
While there are a few hoops you must jump through to leverage a self-directed IRA, this option opens real estate investing to anyone that already has an IRA or an old 401k from a previous employer.
How Does a Self-Directed IRA Work?
To use a self-directed IRA to buy an alternative investment, you need to move money from your self-directed IRA to a Custodian. Custodian companies like Advanta (there are many) will review documents related to the investment to ensure that it meets the terms outlined in the IRS regulations governing Self-Directed IRAs, however they do not provide investment or fiduciary advice.
Depending on the type of self-directed IRA you have, you would either ask the Custodian to disburse the funds or you would wire the funds yourself from a linked checking account.
What Assets Can You Own in a Self-Directed IRA?
Some of the non-traditional assets you can own in a self-directed IRA:
- Cryptocurrency, like Bitcoin or Ethereum
- Precious metals, including gold and silver
- Real estate, such as single family rentals or syndications
- Startups
- Foreign currency
It’s a great way to leverage those retirement funds that are often sitting idle until retirement.
Retirement Account Investing with Oak Street Assets
We’ve personally done a lot of alternative investing with our retirement accounts. Over the years we have saved up funds in 401k accounts that we rolled into IRA accounts after leaving positions at different employers.
We further rolled those funds over into self-directed IRA accounts with different custodians allowing us to invest in alternative assets that the big traditional plan providers and administrators do not allow.
Fidelity and Schwab control your money, want you to invest in their products, and want to keep it that way.
Our preferred IRA custodian is Advanta IRA and we recently shared an interview with them discussing the most common uses and questions that interview with them discussing the most common uses and questions that people have. Watch the video and learn more.
Investing Options with Advanta IRA
Our Advanta IRA direct liaison, Larissa Greene, is very knowledgeable. In the video from above, she provides a lot of insight and shares a lot of great experiences about why people set up accounts with them, the different options available, the rules about what you can and cannot invest in as well as common questions and misconceptions.
Learn more about Advanta IRA by clicking the button below to be directed to our affiliate link. There you can see what options are available and arrange a call with an Advanta representative.
Will social security still be available for me?
Will my pension or retirement account keep up with inflation?
Why use retirement funds to invest in alternative assets?
Now is the best time to prioritize your retirement and lack of diversification is a common pain point with traditional 401k/IRAs. There are a number of reasons a lot of people like to invest outside of traditional offerings with their retirement funds.
Some of the most common are
- Better returns
- Diversification for portfolio hedging in uncertain times
- Less risk & volatility
- Tax benefits
- Diversification for market flexibility when divesting
- Cash Flow to support living expenses
- Investor Freedom: real estate, gold, LLCs, or whatever your heart desires.
Wait… 401k accounts are bad!?
There are A LOT of negative issues with the 401k program and I will address these in its own article COMING SOON.
