Your Expertise In An IRA
The IRS allows an IRA, Individual 401(k), HSA, or ESA to acquire most assets without penalty and while keeping the tax benefits associated with that account type. This means that the IRA holder can utilize the personal expertise and experience that they have with business and investments to make money for their IRA.
An IRA holder’s private information or experience can be used to benefit that IRA.
In fact, almost any investment that makes money outside of an IRA, can also be used to make money for an IRA.
Many investors have a social agenda for their investments. For example, some account holders favor “green” investments. Other individuals choose to invest in local opportunities. As long as the asset acquisition is a “real” economic transaction, intended to make money for the IRA, the IRS will allow you to exercise your own agenda when selecting an investment.
Below are some investments that account holders have looked into for their IRAs. If you have specialized knowledge about a field, you can put it to use with your IRA funds!
- Golf Course
- Hardwood Trees
- High Rate Auto Paper
- Freight Truck Fleet
- Alternative Investment Fund
- Race Horses
- Seismic Data Set
- Mineral Rights
What Are The Benefits of Choosing Assets that utilize your personal expertise?
- Allows you to use your hard-earned expertise in a tax-advantaged environment.
- Because you have experience with and understand the asset, you will have a better sense of how the asset will perform.
- Allows true diversification of your retirement account.
- You have strategic control over the assets that your IRA owns.
- Your personal values can guide your investments.