What Can You Invest in With a Self-Directed IRA? (And What Investments Aren’t Allowed?) Part 1

Why direct your own retirement account? Here’s a simple way to think about it. A Self-Directed IRA is like a choose-your-own-adventure book. You’re not just reading what someone else selected—you’re actively shaping the outcome.

Self-Directed IRA investments give you access to a much wider range of assets than traditional retirement accounts. Instead of being limited to stocks and bonds, you can move beyond typical brokerage options and build a portfolio that reflects your knowledge and interests.

But what can you invest in with a Self-Directed IRA—and what’s off-limits? Let’s take a closer look.

Self-Directed IRA Investments You Can Use

Many investors start with the categories they already understand. Here’s a high-level view of some of the most common Self-Directed IRA investments:

Real Estate

Real estate is one of the most popular options. Investors are drawn to rental income and long-term appreciation, both of which can stay inside the IRA, where tax advantages support compounding over time.

Private Lending

Private lending offers an alternative that isn’t tied directly to the stock market. This can include:

Instead of buying bonds on a public exchange, some investors prefer to lend retirement funds directly, often with collateral and terms they can evaluate themselves.

Precious Metals

Precious metals are another common choice, especially following strong performance in recent years.

However, not all metals qualify. You can’t hold jewelry or collectibles. Instead, IRAs can hold certain IRS-approved bullion and coins (such as American Gold Eagles and other qualifying metals). Storage must also meet IRS requirements.

Tax Liens and Deeds

Tax liens and deeds offer a more specialized investment option. Investors may earn interest on liens or potentially acquire property through foreclosure if taxes go unpaid.

IRA LLCs (Checkbook Control)

Single-member IRA LLCs allow your IRA to own an LLC that holds a bank account. As the manager, you gain check-writing authority for investment purposes.

This structure can make investing faster and more flexible—but it also requires strict compliance with IRS rules.

Joint Ventures and Partnerships

Joint ventures and partnerships allow you to participate in larger deals alongside other investors (as long as they are not disqualified persons).

For example, your IRA might partner with another investor to purchase and sell a property. Joint ventures are often short-term, while partnerships may be longer-term and more formal.

Brokerage Investments

You don’t have to give up traditional investments. Stocks, bonds, and mutual funds can still be part of your strategy within a Self-Directed IRA.

The difference is that you now have more control and flexibility in how your portfolio is structured.

Other Alternative Investments

Self-Directed IRAs can also include:

The range of options is one of the biggest advantages of self-direction.

The Big Takeaway

A Self-Directed IRA can feel like a choose-your-own-adventure book because of the sheer number of investment options available.

But while the choices are broad, they aren’t unlimited. Every investment must follow IRS rules, including restrictions on prohibited transactions and personal benefit.

Understanding both the opportunities and the boundaries is what allows investors to use Self-Directed IRAs effectively.

Interested in learning more about Self-Directed IRAs?  Contact us at 866-7500-IRA (472) for a free consultation or download our free guide.