IRA Investment Options You Likely Weren’t Aware Of

An Independent Retirement Account (IRA) is a great way to secure your future financial security. An IRA account allows you to accumulate money on a tax-free basis for decades, but many miss out on potential earnings they might make by investing this money rather than letting it sit idle. The question is, what are the best IRA investment options?

While the answer to this will ultimately be up to you and your investment brokers’ preferences and risk appetite, the general rule of thumb is to go for those with high growth potential, high turnover levels, large dividends, or those that would otherwise attract high taxation. In this piece, we’ll be looking at some of the options you might not have considered and why you should give them a closer look. Let’s get right into it.

IRA investment options

Mobile Homes

Mobile homes are a highly viable affordable housing option for people who fall within lower-income brackets. Retirees in fixed incomes also make a significant market segment for such homes. They are popular due to their low purchase and maintenance costs, as opposed to apartments or single-family homes that come with the attached property.

As an IRA investor, you have the opportunity to invest in single-unit mobile homes that come with the land they are situated on or purchase a mobile home resting in a mobile home park. In either instance, your account will be able to bring in tax-sheltered earnings from the sale of the property or renting. Should you be in a position to do so, you can even acquire an entire mobile home park for a more substantial, long-term income stream.

Hard Cash and Private lending

It often comes as a surprise to people to learn that they can lend the money they have saved in their IRA accounts to other people – and earn money from the loan. For example, in the real estate sector, there will be plenty of debtors looking for cash to carry out acquisitions, refurbishments, renovations, and so on. You can be the one to lend them the money. Businesses of all sorts are constantly seeking funding for expansion, capital acquisition, inventory, or operating expenses.

You also have the leeway to combine your IRA account with other IRA accounts or separate personal resources for such purposes if you wish to act on a larger scale than your personal IRA can manage. Be careful, however, to title the assets in question under their correct titles so as not to draw the wrath of the tax authorities.

Note: While this is a potentially lucrative investment path, you should always ensure you have measures in place that will protect you in case of default. Also, remember that businesses you lend money to cannot be controlled by you or close family members.

Performing Notes

If you’re not a fan of paperwork and complex details, then performing notes are for you. These are simple and straightforward investment vehicles that do not levy transfer taxes and allow you to participate with relatively small amounts of cash.

Performing notes are investments made on residential mortgages secured by other parties, meaning that you are a sort of landlord, earning as the servicer keeps up with their payments over time. You’ll basically have lent them money to pay their mortgage.

The beauty of this system is that there will be a very little hassle on your end of the table – especially if you have a good mortgage service on your side. They will act as your ‘property manager’ of sorts, ensuring you don’t run afoul of the IRS regulations regarding how active you’re allowed to be when it comes to your IRA accounts.

Final Thoughts

IRA accounts allow for a much higher level of flexibility when it comes to investments, as you have the option of putting your money into stocks, real estate, bonds, the so-called gold IRA, mutual funds, and so on. Whatever assets you choose to invest in, you will not only enjoy their inherent appreciation but whatever tax benefits your particular IRA affords you. Don’t be left behind; consult a trusted IRA custodian and make the most of your hard-earned money – your future self will thank you.