Unlike traditional IRAs that limit you to publicly traded stocks, bonds, and mutual funds, a self-directed IRA opens the door to a wide variety of non-traditional investments—many of which you may already know something about. Investing in alternative assets gives you the power to put your personal expertise to work in building long-term retirement wealth.
So, what exactly can you invest in with a self-directed IRA? Let’s review some of the more popular assets.
Real Estate
Real estate is one of the most popular alternative assets held in SDIRAs—and for good reason. Whether you’re interested in single-family rentals, multifamily properties, commercial buildings, raw land, or even tax liens and deeds, your real estate IRA can own them outright or partner with other investors.
Many real estate investors use their self-directed IRAs to generate short-term rental income, long-term appreciation, or both—all while enjoying the tax advantages of a retirement account. Just keep in mind that IRS rules prohibit personal use of the property, and all income and expenses must flow through the IRA.
Private Lending and Promissory Notes
Your account can issue loans to individuals or entities, secured or unsecured, and earn interest just like a financial institution. Many investors choose to lend to real estate investors, small business owners, or other individuals seeking private mortgages.
As the IRA owner, you set the terms—interest rate, repayment schedule, collateral—and your IRA earns tax-sheltered income through interest payments. It’s an appealing way to put your capital to work if you’re comfortable evaluating risk and structuring deals.
Cryptocurrency
Digital assets like Ethereum and Bitcoin in an IRA are now a legitimate part of many investment portfolios. Self-directed IRAs give you a way to gain exposure to crypto while still reaping the tax benefits of your retirement account.
You’ll need a digital wallet and a qualified custodian who supports crypto holdings, but once that’s set up, your SDIRA can buy, hold, and sell digital currency just like any other asset.
Private Equity and Startups
Want to invest in early-stage companies or private businesses? Your SDIRA can hold ownership shares in LLCs, private stock, and other business entities—provided those businesses aren’t disqualified (such as one you or a family member control).
Private equity investments can carry higher risk, but also the potential for outsized returns. It’s an appealing option for investors who have insight into a specific industry or want to support emerging ventures.
Precious Metals
Your account can hold a variety of IRS-approved precious metals—gold, silver, platinum, and palladium—in the form of certain coins or bullion.
The metals must be stored in an approved depository (not your home safe), but they offer a tangible hedge against inflation and market volatility that many investors find attractive.
Farmland, Timber, and Mineral Rights
Looking to invest in resources that grow in value—literally? SDIRAs can hold agricultural land, timber-producing acreage, and even mineral or oil and gas rights. These types of assets often produce ongoing revenue, such as lease payments or royalties, while providing long-term appreciation potential.
They’re not the most common investments in IRAs, but they’re fully allowed and can be a strong fit for investors who understand land and resource-based markets.
Other Investments You Can Hold in an SDIRA
Beyond the more common alternative assets, self-directed IRAs can also hold a variety of niche or lesser-known investments. These options may not get as much attention, but they can offer unique opportunities for diversification and income—especially for investors with specialized knowledge or access.
Here are a few examples:
- Futures and forex trading
- Litigation funding
- Invoice factoring
- Equipment leasing
- Livestock and agricultural investments
- Structured settlements and royalties
- Convertible notes and bridge loans
- Data centers, storage units, and car washes
The key with all of these is to understand the asset, the risk profile, and how the investment fits within IRS guidelines. Many of these lesser-known strategies require more hands-on evaluation, but they can bring rewarding results to experienced or curious investors.
Additionally, not all self-directed IRA custodians and administrators are equipped to handle every alternative investment. Make sure the one you choose to work with has experience with the assets you are considering.
What You Can’t Invest In
While self-directed IRAs offer tremendous flexibility, there are a few limits to be aware of. The IRS prohibits investments in:
- Life insurance
- Collectibles like artwork, antiques, or rare wines
- Transactions that benefit you or certain family members directly (called prohibited transactions)
Investing in these assets is considered a prohibited transaction and can cause penalties, taxation, and/or disqualification of your SDIRA.
Ready to Explore Alternative Assets?
Advanta IRA specializes in helping investors take control of their retirement accounts through self-direction. We provide the tools, education, and personalized support you need to confidently invest in the assets you understand.
Whether you’re new to alternative investing or ready to level up your current IRA strategy, we’re here to help. Learn more about the possibilities and contact us today.
About Advanta IRA
Advanta IRA is widely recognized as one of the best self-directed IRA companies in the nation, empowering individuals to take full control of their retirement investing. With more than two decades of experience and over $3.5 billion in assets under administration, Advanta IRA combines industry expertise with a personalized approach that sets it apart from other administrators. Every client is paired with a dedicated account manager who guides them through each transaction, ensuring efficiency, accuracy, and peace of mind.
The firm’s team of professionals, including attorneys, MBAs, Certified IRA Services Professionals (CISPs), and Self-Directed IRA Professionals (SDIPs), provides exceptional knowledge and service in all aspects of self-directed retirement investing. Advanta IRA’s mission is simple: to make alternative investing accessible, transparent, and fully compliant while giving investors the freedom to choose assets that align with their goals and values.
Education is central to the company’s philosophy. Advanta IRA offers a robust library of free resources, including weekly webinars, podcasts, blogs, and case studies that help investors make informed decisions. Clients frequently praise the firm’s responsiveness and personal attention, describing their experience as seamless and professional from start to finish.
Advanta IRA continues to lead the self-directed IRA industry through innovation, expertise, and a steadfast commitment to client success, helping investors build wealth on their own terms.
