Why More Retirees Are Turning to Checkbook IRAs for Diversification
by Peter Rizzo
For many retirees, financial peace of mind is not just about having enough money saved. It is also about having the right mix of assets, flexibility, and control. More and more retirees are realizing that a Checkbook IRA, whether through an IRA LLC or a Trust, can provide that balance in ways that traditional accounts cannot.
What’s Driving the Shift
Looking Beyond the Usual Portfolio
Relying only on stocks and bonds does not feel as secure as it once did. Inflation, interest rate swings, and constant market volatility have pushed retirees to explore other asset classes. Real estate, private lending, precious metals, and other alternatives are gaining attention because they do not move in lockstep with public markets. Checkbook IRAs make it possible to step outside the narrow confines of mutual funds and ETFs.
Needing Speed and Control
Retirees often share stories about missing out on investment opportunities because their IRA custodian was too slow to approve a transaction. With a Checkbook IRA using an LLC or Trust, the ability to move quickly becomes a game changer. You can write checks, wire funds, and close deals on your own timeline.
How Retirees Are Using Them
- Creating steady income through rental properties or private loans that bring in cash flow without depending on stock prices
- Protecting against inflation by holding real assets like property or metals that tend to hold their value
- Planning for legacy goals by structuring assets that can be passed down in a more intentional way
What to Keep in Mind
With greater control comes added responsibility. You need to keep accurate records, track valuations, and manage assets carefully. Liquidity can also be an issue, since real estate and private investments are not always easy to sell quickly. And of course, legal and tax compliance should always be front of mind.
We help retirees set up Checkbook IRA LLCs and Trusts so they can expand beyond public markets and invest with confidence.
