Understanding
Self Directed IRA’s
…and their use in Alternative Assets
“Alternatives have the potential to enhance return, reduce volatility, and improve diversification — particularly for portfolios overly concentrated in public equities.”
-BlackRock – Why Alternatives Matter (2022)
“For wealthy investors, alternatives are no longer optional. They are the centerpiece of portfolio construction. The average portfolio of individuals with $10M+ in assets had over 50% in alternatives including real estate, private equity, and private credit.”
-KKR Global Wealth & Asset Management Insights, 2022
“High-net-worth individuals are reducing allocations to traditional equities in favor of alternative assets — real estate, private equity, and sustainable investments now represent a growing share of portfolios for those with significant wealth.”
-Capgemini World Wealth Report 2023
With the funds now in your Self-Directed IRA, you can direct your custodian to invest in real estate—whether that’s raw land, a rental property, a commercial building, or a share in a private real estate project. The investment must be made in the name of the IRA, not your personal name, and all income and expenses related to the property must flow through the IRA account. This keeps the investment tax-advantaged. It’s important to follow IRS rules, including avoiding any personal benefit from the property, like using it yourself or hiring your own business to work on it.
This approach is a great option for people who want to diversify their retirement portfolio into something more stable and tangible than the stock market. Real estate can generate steady income and long-term appreciation, and when held inside an IRA, those returns grow either tax-deferred or tax-free depending on the account type. It’s a powerful way to build lasting wealth while investing in something you can understand and believe in.
We make this process incredibly easy.
Our Investor Portal syncs with your custodial account for seamless integration of reporting and financial distributions. You control all distribution of funds from your custodial account. All reports come to you automatically and are readily available for download when needed.
Moving funds from a traditional, brokerage-managed IRA into a Self-Directed IRA (SDIRA) or Solo 401(k) gives you more flexibility and control over how your retirement money is invested. Instead of being limited to stocks, bonds, or mutual funds, a Self-Directed IRA lets you invest in things like real estate, private placements, and other alternative assets. The process starts by opening an SDIRA with a custodian who specializes in these types of investments. Once your new account is set up, you can transfer or roll over funds from your existing IRA or 401(k) without triggering taxes or penalties, as long as the money stays within retirement accounts.