Alternative Investments in Your Retirement Account

by Peter Rizzo

Life Settlements in a Retirement Account? Think Again.

Alternative Investments are becoming extremely popular with today’s economy being in flux and Traditional Retirement Fund Investments are having trouble keeping up with inflation numbers.

The best way to invest retirement funds in alternative assets is to do your research and choose investments that are appropriate for your risk tolerance and investment goals. Some of the most popular alternative assets for retirement include:

  • Real estate: Real estate can be a good way to diversify your portfolio and generate income. You can invest in real estate directly by buying rental properties or investing in real estate crowdfunding platforms.
  • Private equity: Private equity is a type of investment that allows you to invest in privately held companies. This can be a good way to get access to high-growth companies that are not yet publicly traded.
  • Precious metals: Precious metals such as gold and silver can be a good way to protect your portfolio from inflation. You can invest in precious metals directly by buying coins or bars, or you can invest in exchange-traded funds (ETFs) that track the price of precious metals.
  • Commodities: Commodities such as oil, wheat, and corn can be a good way to hedge against inflation and generate income. You can invest in commodities directly by buying futures contracts or ETFs that track the price of commodities.
  • Venture capital: Venture capital is a type of investment that allows you to invest in early-stage companies. This can be a very risky investment, but it also has the potential for high returns.

It is important to remember that alternative assets are not without risk. They can be more volatile than traditional investments, and they may not be suitable for everyone. If you are considering investing in alternative assets, it is important to do your research and speak with a financial advisor to make sure that they are right for you.

There are Several programs that will allow you to do this:

 A Checkbook IRA LLC and Solo 401(k) are two of them.

A Checkbook IRA LLC is a combination of a Self-Directed IRA owning an LLC (Limited Liability Company) with you being the manager.

1. This structure allows you to have “checkbook control” over your IRA funds, meaning you have the ability to make IRS-approved investments more quickly and with fewer fees.

2. The Check Book IRA option has been available since 2003, but most custodians have done a good job keeping it a secret. By having a custodian that has nothing to sell you and adding an LLC, you can have instant investment control to go outside the typical Wall Street type investments.

A Solo 401(k), also known as an Individual 401(k) or a One-Participant 401(k), is a retirement plan designed for self-employed individuals or business owners with no employees other than their spouses.

  1. It offers similar tax advantages as a traditional 401(k) plan, such as tax-deferred growth and potentially deductible contributions.
  2. With the proper initial setup it can also have Full checkbook and administrative control as does the Check Book IRA.

You can have a discussion of your personal situation by setting up an appointment here.

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