Real estate and private equity are very common asset types that draw interest among self directed IRA investors.
Beyond the most common asset types, a self directed IRA opens up many investment options that you may not have previously considered.
You can choose to invest in a product or industry you’re familiar with or a product, company or service that is developing something that you have a particular passion for.
Of course, there are some limitations that you will need to be familiar with before you begin investing.
The law does not permit IRA funds to be invested in life insurance or collectibles. And anything related to the cannabis industry since it is still illegal at the federal level.
Refer to the IRS website for more details about investment limitations.
And as always, we encourage you to consult with a tax or financial professional.
Here are some examples of disallowed collectibles in your IRA:
Familiarize yourself with overall prohibited transactions to avoid potential tax consequences.