Speak with a Broad specialist:
(800) 395-5200Schedule a CallOpen an Account
Speak with a Broad specialist:
(800) 395-5200Schedule a CallOpen an Account

March 12, 2024

Can I Buy Stocks with a Self-Directed IRA?

Key Points 

  • Self-Directed IRAs are known for providing a way to diversify your retirement portfolio with alternative assets, such as private placements.
  • Private placements are essentially stock in private companies.
  • Broad Financial’s Checkbook IRA Specialists can answer your questions about self-directed investing.
display stock market numbers

Self-Directed IRAs allow you to invest in alternative and potentially lucrative assets such as real estate, cryptocurrency, and more. By being able to invest in assets that you know and are passionate about, you might be able to shield your retirement portfolio from market volatility and achieve desirable gains. But what if you don't want to skip out on the stock market entirely? You might be wondering, “Can I buy stocks with a Self-Directed IRA?”

The short answer is it's possible. Let's talk about why and explain what options you have if you want to invest in alternative assets and stocks altogether.

What Is a Self-Directed IRA?

Letters on a desk that spell out “SDIRA” next to a calculator and money to show that you can grow your retirement savings with a Self-Directed IRA.

A Self-Directed IRA (SDIRA) is a retirement account that gives you greater control of your retirement investing. Exciting investment opportunities can include real estate, commodities, private equity, and more. With an SDIRA, you can put your retirement funds into the assets you think have the most growth potential.

A type of Self-Directed IRA, known as a Checkbook IRA, can invest in stocks and bonds if the IRA LLC or IRA Trust opens a brokerage account.

Self-Directed IRA vs. Standard IRA

It's helpful to understand the fundamental difference between Self-Directed IRAs and standard IRAs. Once again, an SDIRA is designed to allow alternative asset investing. Meanwhile, a standard IRA is designed to hold stocks, bonds, and mutual funds. One of the primary reasons investors decide to set up SDIRAs is for greater retirement portfolio diversity. By opening up the possibilities beyond conventional Wall Street products, there's potential for more growth.

Investing in Private Stocks with Your SDIRA

private stocks a self-directed ira investor is researching

An exciting opportunity that Self-Directed IRAs offer is the ability to invest in private placements. A private placement is a non-public securities offering that’s exempt from most Securities and Exchange Commission (SEC) regulations. You can use your SDIRA to invest in these types of offerings.

With private placements, you buy shares directly from a company not listed on a public exchange. These companies may range from startups seeking growth capital to established companies looking to expand.

What Are Your Investment Goals?

What kind of retirement portfolio do you hope to build? Generally, a well-diversified retirement portfolio includes both alternative investments and stock market products. This can help reduce potential risk that comes with market volatility. It’s considered best practice to consult a tax advisor before placing an investment.

What Is an IRA LLC?

wooden blocks spelling out IRA LLC

One strategy employed by investors seeking more autonomy within their SDIRAs is to set up an IRA LLC (also known as a Checkbook IRA). This supercharged IRA LLC enables the IRA owner to forego custodian signatures for their everyday investment transactions and act as the non-compensated manager of the LLC.

Let Broad Financial Help

SDIRAs offer investors a way to diversify their retirement portfolio. An SDIRA opens doors to alternative investments that can enhance a conventional retirement portfolio. Broad Financial specializes in setting up Checkbook IRAs – an advanced but approachable tool in the SDIRA domain. Schedule a call with a Broad Financial Specialist to learn more today!

Disclaimer: Broad Financial LLC does not provide legal, tax, or investment advice. Please consult with your tax or legal advisor before making investment decisions. 


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