Forge Trust
Investment Opportunities For Retirement Portfolio Diversification

Alternative Asset Investment Opportunities

Alternatives can bring significant diversification benefits to a portfolio

An alternative investment refers to an investment in an asset that is not a publicly traded security such as stocks, bonds, mutual funds, and ETFs.

Since alternative investments are not highly correlated with publicly traded investments they do not often increase or decrease in value along with public market movement.

IRAs are an ideal vehicle for investing in alternatives

Most alternative assets are not publicly traded so they tend to be illiquid. This makes them better suited for a longer-term investment horizon such as retirement investing.

And since the IRS allows you to use tax-advantaged retirement funds to invest in alternative assets, appreciation compounds tax-free. The account type most commonly used for this is known as a "self-directed IRA".

There are only a handful of investments not allowed by the IRS in an IRA. Whle not an exhaustive list, below are some of the more common types of alternative investments.

Types Of Alternative Asset Investment Opportunities

Asset Type Asset Description
Real Estate
Real Estate IRA

IRA funds may be used to invest in a wide variety of real estate including vacant land, farmland, residential, commercial or vacation property. Investors often choose to invest IRA funds in real estate because it is a familiar and tangible asset that can offer long-term appreciation or supplemental income during retirement.

There are strict rules and guidelines regarding the use of IRA funds for real estate investment as the real estate must be strictly used as investment property. You cannot use IRA funds to purchase a private residence, a family vacation home or a property intended for use by a disqualified person.

Private Equity
Private Equity IRA

Private equity refers to investing in privately held companies and businesses that are not publicly traded on the stock exchange. Self-directed IRA investing allows individuals to be opportunistic and invest in startups, early stage or growing companies that are raising capital. Your self-directed IRA can invest directly into a private company of your choice or through one of the many private placements available such as a hedge fund, fund of funds, online marketplace and more.

Precious Metals
Precious Metals IRA

Certain gold, silver, platinum and palladium coins and bullion can be held in IRAs. Precious metals require highly secure storage so an investor must choose a depository for safekeeping of the IRA-owned metals. Forge Trust has formal relationships with several depositories and offers clients a choice of storage facility.

Promissory Notes
Notes: Secured and Unsecured IRA

A promissory note represents a promise to repay a borrowed sum of money by a specified maturity date. The investment is made on set terms with fixed interest payments and both principal an interest are collected on behalf of a self-directed IRA. All principal and interest payments are paid directly to the custodian on behalf of the IRA. Loans may be unsecured or secured by real estate or other collateral.

Investment or Crowdfunding Platforms IRA

Crowdfunding platforms give investors access to private stock in up and coming startups. Investors can use their self directed IRAs to fund virtually any crowdfunded venture.

Endless Opportunities

The IRS allows the use of retirement dollars to invest in almost any type of asset. However, you still need to be aware of a few restrictions.

Getting started is easy.

Open. Fund. Invest.

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Have a question? Call us at (800) 248-8447.