On the Margins: Alternative Investments
Not all retirement plan investments are plain vanilla offerings such as stocks, bonds, and cash. Adding a small percentage of something a little more exciting like real estate or precious metals is a way to further diversify your portfolio. But the added risk makes it important to do quite a bit of homework before diving in.
Self-directed IRAs are regular IRA accounts with all the same tax rules and characteristics that you’ve read about already. These special IRAs use the term “self-directed” to show that they are accounts that give you access to a broad list of alternative investments for your IRA. This can include any investment that is not prohibited by the tax law for IRAs. Common ...