By J.P. Dahdah, Founder & CEO of Vantage
If you’ve been following the news about Self-Directed IRA investors, you know that they take advantage of investment opportunities not available through brokerage IRAs. Okay, but where, you may wonder, is the smart money being invested?
For starters, it’s not mutual funds run by invisible managers or money market funds and CDs that yield miniscule yields. That’s why people get into a Self-Directed IRA in the first place. They are looking for alternatives that allow them to control their investment dollars and realize some significant opportunities for gains.
Savvy Self-Directed IRA investors typically follow the market, and market conditions do change over time. That said, the areas discussed below are typical of good investment opportunities, given the right economic climate.
Real Estate. If you are wondering about the best time to invest in real estate. Just ask Donald Trump, who said:
“Real estate is at the core of almost every business, and it’s certainly at the core of most people’s wealth. In order to build your wealth and improve your business smarts, you need to know about real estate.”
In fact, history will show that the wealthiest people in America amassed their fortunes through real estate. Many real estate investment opportunities exist, including single-family residential, multi-family rentals, commercial properties and raw land. And, all of these investments are available through a Self-Directed IRA. Sadly, the average person doesn’t know about, doesn’t know how to leverage, or has been incorrectly told they can’t purchase real estate by their “trusted advisors.”
Precious Metals. People are investing in precious metals for a variety of reasons. The value of precious metals endures over time. Gold, for example, has proven to be effective protection against inflation, a declining dollar and global economic stress.
Private Companies. In April of 2012, Congress passed the Jumpstart Our Business Startups (JOBS) act as a way to support entrepreneurs and small business owners. Key provisions of the JOBS act included easing federal regulations concerning investments. The ban on small business solicitation and advertising for funding has been lifted, and private companies can now accept contributions from a larger number of individuals.
These provisions have attracted a lot of Self-Directed IRA investors because they offer the opportunity to hold equity in a business before it goes public.
Private Lending. Self-Directed IRA investors have the opportunity to think and act like a bank by providing loans to other individual investors and entities. Because money from traditional lending institutions is currently tight, private sources of funds have increased and lenders are enjoying handsome returns.
If you are wondering where to put your investment dollars, follow the savvy Self-Directed IRA investors.
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or ClientService@VantageIRAs.com.