Under IRS rules, IRAs can invest in almost anything, with the exception of life insurance, most types of collectibles and the shares of an S corporation, that is, shares of a company that chooses to transfer corporate income and losses to shareholders for tax purposes. Alternative investments to IRA include real estate, private equity, precious metals such as Gold based IRA, startups, cryptocurrencies, and more. These assets can generate wealth at a faster rate than traditional stocks, bonds and mutual funds. As the owner of a self-directed IRA, you decide what options to add to your plan and make the decision to invest in what you know and understand. You can open an IRA on your own through almost any bank, brokerage company, insurance company, or investment company.
In most IRAs, you can choose individual stocks or choose from a long list of mutual funds. Or you can leave those decisions in the hands of an expert by choosing a low-cost robo-advisor, an investment manager with IT technology, to do the work for you. Check out our best robo-advisor options. An IRA owner who discovers a collectible or antique worth thousands of dollars for sale at a garage sale will not be able to protect the income tax from the sale of this asset in an IRA or other retirement plans.
In addition, the owner of the IRA cannot be held responsible for additional resources on the leveraged assets held in the IRA.