Introduction to Self-Directed Retirement Plans


What is a Self-Directed Retirement Account? 

A Self Directed Retirement Account (SDRA) is a retirement account that offers a wider range of investment options than a standard retirement account held at a traditional custodian. SDRAs can include IRAs (both Roth and traditional), SEP-IRAs, Solo 401(k)s, and others.  

Outside of a very few exceptions, the IRS does not limit your investment options for your retirement accounts.  

Opening a self-directed retirement account allows you to expand your retirement investing horizon. Traditional custodians and brokerage firms limit your retirement account investment options to vehicles like individual stocks and bonds, mutual funds, ETFs, CDs, and money market funds.  

What can I invest in with a SDRA? 

Self-directed retirement accounts allow for investments in non-traditional and alternative assets. Some popular options include: 

  • Single or Multifamily Rental Property 
  • Some types of Precious Metals 
  • Cryptocurrencies 
  • Undeveloped Land 
  • Mineral Rights (Oil and Gas) 
  • LLC’s 
  • LP’s 
  • C-Corporations 
  • General Partnerships 
  • Joint Ventures 
  • Real Estate Loans 
  • Business Loans 
  • Timber Deeds 
  • Crops 
  • Cattle/Livestock Certificates 
  • Race Horses and Competition Animals 
  • Structured settlements 
  • Tax Liens 
  • Private debt 
  • And much More 

These and other types of alternative assets allowed in self-directed retirement accounts offer investors the opportunity to use their retirement funds to diversify beyond traditional asset classes like stocks, bonds, and cash, as well as beyond conventional investment vehicles like mutual funds and ETFs. 

 There are a few investments that aren’t allowed in retirement accounts: 

  • life insurance (not permitted in an IRA but is permitted in a Solo 401(k) account with some restrictions) 
  • collectibles (stamps, cars, art, etc.) 
  • S-Corporation stock 

Checkbook control – you’re in charge  

Perhaps the most significant advantage of a self-directed retirement account is the fact that you have complete control over where and how your funds are invested. Retirement accounts with traditional custodians just can’t offer this level of control and investment flexibility.  

Checkbook control is a powerful tool for retirement investors. This feature allows self-directed account holders to take charge of their investments and offers other advantages as well.  

Once you fund your account with qualified contributions, or from existing employer-sponsored 401(k)s, you’ll have full access to those retirement dollars and the ability to invest in a wide range of alternative investments. 

Learn More About Self-Directed Retirement Accounts 

If you’d like to learn more about Self-Directed Retirement Accounts, our team has put together a FREE EBOOK that covers in-depth the different types of accounts, contribution limits, investor profiles, and much more. CLICK HERE to request your free copy! 

About the Author 

Prior to founding Rocket Dollar, Henry was the co-founder of Honest Dollar, a Robo-advisor retirement platform that was acquired by Goldman Sachs, as well as a founder of MY Group LLC, a $2.5-billion assets under management investment firm. 

Henry founded Rocket Dollar to give retail investors the ability, with a portion of their retirement savings, to take advantage of the explosion of new alternative and private investment opportunities with their tax-advantaged dollars. 

Rocket Dollar was founded in 2018 with the belief that retirement is changing. We believe that people should not be limited in their investment options as they work towards the retirement they envision for themselves. We’re here to make it fast and straightforward for people to take control of their retirement savings. 

Upside Avenue and SDIRA Funding Allocations 

Upgrade your retirement plans and allocate multifamily real estate to your self-directed retirement account.  Adding the non-traded multifamily REIT from Upside Avenue to your retirement portfolio can generate long-term, positive returns. 

Search our list of retirement custodians many Upside Avenue investors are currently using or request to add your custodianSearch now.