How To Go About Investing In Alternative Assets With Your Retirement Accounts

Diversifying your retirement portfolio is possible

You may be wondering how to diversify your existing retirement accounts to hedge against the ever growing risk of the current stock market. You may or may not have already talked to a financial adviser or investor about investment options to limit risk. More than you have been told or understand how most financial advisers diversify investment and retirement portfolios. They are diversified typically by spreading your portfolio across different asset classes inside of the stock and bond markets. Most of the time they don’t talk about diversifying outside of the stock and bond markets. Why not? Mainly because they just don’t make as much money or do not understand investments that are outside of the stock and bond markets. The truth is, you can invest with your IRA or 401k into assets that are outside of the stock and bond markets. You can TRULY diversify your retirement portfolio if you want to. You just need a provider that will allow for a self-directed IRA. A self-directed IRA is the same thing as a regular IRA except that the provider allows for investments outside of the stock and bond markets.

What Should You Do Now To Diversify Your IRA or 401k Outside of the Stock/Bond Markets?

First you need to decide what type of investment you are looking to invest in. In all reality the types of investments that are allowed inside of an IRA and 401k are almost endless. As long as you follow the rules that are outlined by the IRS then just about any investment opportunity can be invested in with your IRA or 401k. This is why a self-directed IRA is such a great addition to any normal IRA or 401k nest strategy. There are so many optinos and you can TRULY diversify outside of the stock and bond markets.

What are some of the most popular types of self-directed IRA investments? Physical real estate, stock in private companies, secured and unsecured loans and precious metals are some of the most popular investments inside of a self-directed IRA. Two of the common names when investing in some of these investments are:

  • A real estate IRA or self-directed IRA real estate investment is an IRA that invests in real estate.
  • A Gold IRA or Precious Metals IRA is an IRA that invests in gold or another allowed precious metal.


In all reality though a self-directed IRA is the most common name for investing in any of these alternative investments. No matter what you want to invest in you will need to make sure that the provider allows for TRULY self-directed IRAs that can invest in real estate, gold or other precious metals, private placements, etc.

Roll Over Funds Into New Provider Account

What generally happens when rolling over funds into a new provider account is that you have an old 401k from a previous employer. You take that old 401k and roll it over into the new self-directed IRA account. Less likely but another option to rolling over funds is when your current employers allow for some funds to be transferred out and rolled over into another account elsewhere.

One thing to remember when opening up a self-directed IRA is that the provider is responsible for the bookkeeping and reporting for the account, just like all providers of IRAs and 401ks are required to do. Outside of that responsibility though you as the account holder are in charge of picking the investment, and deciding how it is handled. This is one of the benefits of a self-directed IRA. You get the ability to invest how you want with the account. Typically fees are much much cheaper than with your regular stock and bond market fees and adviser fees.

Invest How You Choose

The provider should then guide you throughout the purchase of your new investment. They aren’t going to actually tell you what you need to invest in but guide you as far as making sure you are following the rules provided by the IRS for IRA and 401k investments.

If you are wanting to take some control over your retirement investing and like the idea of diversifying outside of the stock market then a self-directed IRA is the perfect option. Let Accuplan Benefits Services help you set up an account and invest in what you want.

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