Here’s What You Can Do With Your Account Earnings
Estimated reading time: 2 minutes
Chances are that before you’d even opened your Self-Directed IRA account, you’d already picked your first investment. If you’ve recently sold that initial investment, you might be at a loss for what to do next.
Find Your Next Opportunity and Invest
The truth is your earnings along with the cash from your initial investment are just more capital you can invest. While you might be able to withdraw some of your funds if you meet certain criteria, it is generally advisable not to take a distribution. Your IRA funds and its earnings can be reinvested and continue to grow tax free or tax deferred.
Thus, the next step is finding a new opportunity to invest in. As a Self-Directed IRA (SDIRA) holder, your investment options are vast. But we understand that can be overwhelming, so let’s break it down.
Your Investment Options
Any investment opportunity that is legally allowed can be held in your SDIRA. If the law allows the investment, your SDIRA can hold it—period. No other retirement plan or account can claim the same. Your task is to source, vet and decide which investments to hold within your IRA.
Rather than insist on particular investments and restrict access to others (such as alternative assets), a Self-Directed IRA cracks the concept wide open to give you access to its full potential.
Choose an investment that inspires you. You may even find there’s something you already have a particular affinity for. You can invest IRA funds in your friend’s startup, or a business you believe in. There might be a new apartment building in your neighborhood looking for investment sponsors. Perhaps you’d like to invest in cryptocurrency? Or even livestock?
Here are some more examples of what SDIRAs can invest in:
- Private equity
- Private placements
- Limited Liability company (LLC)
- Limited partnership (LP)
- Joint ventures
- Venture capital
- Developed or undeveloped land
- Single-family homes
- Office building
- Shopping center
- Parking garage
- Retirement home
- Industrial building
- Mobile home park
- Mortgage notes
- Performing or non-performing notes
- Micro loans
- Oil and gas investments
- Hedge funds
- Precious metals
Once you’ve set your sights on a new investment opportunity, get going on your next step by learning about due diligence.