An IRA is a type of retirement account that an individual can open on their own or with the help of a financial advisor. To contribute to one, you must have earned income from employment. There are four IRA investment options to choose from, each with its own set of pros and cons.
There are 4 IRA investment options you likely weren’t aware of: Real Estate, Stocks and Bonds, Gold/Silver Coins, Cash/Money Market Accounts.
Real Estate: Investors can purchase with cash or use other funds to finance the property. Generally speaking, there are two types of real estate properties that one could invest in through an IRA: rental income-producing properties and those purchased as personal residences for future use by yourself or your heirs.
Stocks and Bonds: Investment in the stock market or purchasing bonds are other ways to make money with an IRA. The type of investment you make depends on your overall risk tolerance level. Diversification is essential for all investors regardless of whether they have a retirement account because it reduces their exposure to any particular economic sector or company.
Gold/Silver Coins: You can also purchase gold, silver, and other precious metals in your IRA account with a Self-Directed IRA LLC. Precious metal coins are easy to store and may be easier to liquidate than physical bullion if you choose not to hold on to it long term. To qualify for this type of IRA investment, the coins or metals must be stored in a foreign country or at a storage facility.
Cash/Money Market Accounts: These types of IRA investments are very low risk. They can be found at banks, credit unions, or money market funds on the stock exchange. For example, suppose you’re concerned about your retirement savings dropping in value due to inflation. In that case, this is another viable option for an IRA investment that is safer than any other IRA investment because inflation tends to increase over time.
As you can see, there are four different IRA investment options available for your retirement account. All of the investments I’ve mentioned carry varying degrees of risk and should be left up to each investor to choose which type best meets their financial goals while also providing them with peace-of-
The main difference between these plans is the tax treatment they offer to investors when money is withdrawn from them at retirement or if you choose to close your account before that time.