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December 7, 2023

Top 5 Alternative Assets for Self-Directed IRAs

Key Points 

  • A Self-Directed IRA is a type of Individual Retirement Account (IRA) that allows you to invest beyond Wall Street products.
  • With a Self-Directed IRA, you can invest in a variety of alternative assets and diversify your retirement portfolio.
  • The most popular alternative assets for Self-Directed IRAs include real estate, cryptocurrency, private placements, promissory notes, and crowdfunding/startups.
open road and yellow sign that reads

Are you looking to diversify your retirement portfolio beyond Wall Street? You can do so with Broad Financial’s Self-Directed IRA! With a standard IRA, you typically have to stick investing in Wall Street products, like stocks, bonds, and mutual funds. A Self-Directed IRA, however, works a lot like a standard IRA  but opens the doors to  investing in alternative assets. These investments can give you the chance to diversify your retirement portfolio, hedge against inflation, and potentially yield high returns. Let’s dive deeper into five of the most popular alternative assets among Self-Directed IRA investors.

1. Real Estate

Tall apartment buildings to represent that you can invest in real estate with a Self-Directed IRA.

One of the most popular assets among Self-Directed IRA investors is Real Estate. Real Estate allows individuals to invest in something that’s tangible and typically appreciates in value over time. With a Self-Directed IRA, you can invest in a variety of valuable real estate opportunities, including:

  • Vacation homes
  • Rental units
  • Fix & flips
  • Multi-family properties
  • Office buildings
  • Retail locations
  • Warehouses

2. Cryptocurrency

Additionally, your Self-DIrected IRA can take your retirement investing into the digital age; you can use your Broad Financial Self-Directed IRA to invest in just about any cryptocurrency, including but not limited to:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Cardano (ADA)
  • Solana (SOL)
  • XRP (XRP)
  • Quant (QNT)
Cryptocurrency investor on their phone and computer with different digital currency coins such as Bitcoin and Ethereum laying on a laptop’s keyboard.

3. Private Placements

Investor in a suit with the words "private equity" in the middle and "leverage, IRR, NPV, Buyout, Debt, Growth, Return, and Venture" all around it to show that you can invest in private placements with a Self-Directed IRA.

Private placements is a general "catch-all" term for private businesses, private equity, hedge funds, etc. By investing in the private placement of your choosing through your Self-Directed IRA, you can enjoy investing in a private venture that you know and believe in. Some examples include:

  • Private equity
  • Private debt
  • Hedge funds
  • Private REITs
  • Most companies and stocks that aren’t sold publicly

4. Promissory Notes

For typically predictable, stable returns, you can invest in a number of promissory notes with your Self-Directed IRA. These include:

  • Notes secured by real estate
  • Notes secured by non-real estate (such as a note secured by machinery)
  • Unsecured notes
Self-Directed IRA account holder on computer and investing in a promissory note with a Self-Directed IRA.

5. Crowdfunding/Startups

Small business owner holding an "Open" sign to her shop showing that you can invest in a startup with a Self-Directed IRA.

With a Self-Directed IRA, you can dip your feet into investing in startups and crowdfunding opportunities with high growth potential, such as:

  • Local private businesses
  • Healthcare startups
  • Tech companies

Additional Alternative Assets

When it comes to a Self-Directed IRA, the sky is truly the limit. While the investments mentioned above are very popular, there are a variety of other opportunities you may want to explore, including:

  • Livestock
  • Cattle
  • Restaurants
  • Vineyards
  • Racehorses
  • Mobile homes

The right investment for you may depend on factors like your unique knowledge and interests as well as your long-term retirement goals. A Self-Directed IRA Specialist from Broad Financial can answer any questions you may have.

Top 5 Alternative Assets for Self-Directed IRAs Infographic: Real Estate (vacation homes, rental units, fix & flips, multi-family properties, office buildings, retail locations, warehouses), Cryptocurrency (bitcoin, ethereum, cardano, solana, XRP, quant), Private Placements (private equity, private debt, hedge funds, private REITs), Promissory Notes (notes secured by real estate, notes secured by non-real estate, unsecured notes), Crowdfunding/Startups (local businesses, healthcare startups, tech companies)

How To Get Started

It couldn’t be easier to invest in alternative assets through a Self-Directed IRA. Broad Financial's Self-Directed IRA simplifies alternative investing even further as it upgrades you to the power of checkbook control. Here’s what you can expect from our tried and true process:

Icon investor typing on computer with a clock next to him opening and funding his Self Directed IRA account

1. Open

Start by filling out Broad Financial's easy online application. Simultaneously, open a Self-Directed IRA with our sister company and in-house Self-Directed IRA custodian, Madison Trust.

Icon investor holding money and increasing graphs in the back showing that he opened and funded his IRA LLC checking account

2. Fund

Fund your Self-Directed IRA by transferring or rolling over funds from an existing IRA or 401(k). You can also fund your Self-Directed IRA with an initial contribution.

Investor selecting from a variety of choices to display the ability to choose a variety of assets with a Checkbook IRA.

3. Create

Broad Financial will create an entity, such as an LLC or trust, for your IRA. You will then go to the bank of your choice and set up a checking account in the name of your LLC or trust.

Icon investor facing forwards pointing at an increasing trend graph to show how his investments have grown in his IRA LLC

4. Invest

At your direction, Madison Trust will send your funds from your Self-Directed IRA to your dedicated checking account. Now you can invest in the alternative asset of your choice with the power of checkbook control. Simply write a check or send a wire from your dedicated checking account.

Why Broad Finanicial?

There are several reasons Broad Financial has earned a reputation as the leader in Self-Directed retirement plans. If you choose us, you’ll enjoy the following benefits.

Free Lifetime Support

If you're new to Self-Directed IRAs, rest assured that our team is committed to your success. Our Self-Directed IRA Specialists can answer any questions you might have. We offer our clients the highest industry-rated free, lifetime customer support.

Industry Expertise

Our Self-Directed IRA Specialists deeply understand a wide variety of alternative asset classes, from real estate to cryptocurrency. When you want to move forward with your investment, we can guide you through the self-directed investing process.

No Transaction or Hidden Fees

Broad Financial’s Self-Directed IRA doesn’t charge transaction fees or fees based on your account's value. This means you’ll have more money in your pocket to invest in alternative assets and potentially maximize your retirement savings.

Schedule a Call with Broad Financial

Self-Directed IRA account holders speaking with a SDIRA Custodian

If you’re interested in investing for retirement with alternative assets, a Self-Directed IRA from Broad Financial should be on your radar. To get started or learn more, we encourage you to contact us 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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