Home » Blog » iLearn » Do You Need to be a High Net Worth Individual to Invest in a Self-Directed IRA?
A pen and marker on paper with the words " high net worth ".

Do You Need to be a High Net Worth Individual to Invest in a Self-Directed IRA?

One of the greatest benefits of a self-directed IRA is the ease of accessibility for individuals at nearly any income level. Whether you are a young professional just starting your career or in your final years of work before retirement, self-directed investing can help you reach your financial goals.

However, one of the most common questions we get from our prospective clients is, “Do you need to be a high net worth individual to invest in a self-directed IRA?†Keep reading to find out.

Investing in a Self-Directed IRA on Any Budget

Because self-directed IRAs are completely managed by the account owner, they’re an excellent investment option no matter your budget. While some investors add a self-directed IRA to their investment strategy as a way to diversify their portfolio, others invest with one because of the opportunities it provides.

With many alternative investment options available, owning a self-directed IRA offers investors the opportunity and power to choose how much, where, and at what time to invest. Even small budgets can mean big rewards in alternative investment categories such as equipment leasing, oil and gas, or accounts receivable financing.

On the other hand, investors with a large budget also have ample opportunity to put those hard-earned funds to work with a self-directed IRA. Alternative investment options such as private stock offerings, periodic payment judgments, and structured settlements, as well as real estate, limited liability companies, and c-corporations are all available with a self-directed IRA from iPlanGroup.

Self-Directed IRA Investment Options

Self-directed IRAs are popular with investors from a variety of economic backgrounds because of their versatility. Offering an abundance of investment opportunities, self-directed IRAs give investors the chance to utilize their investment expertise. Here are a few examples of alternative options available for self-directed IRA owners:

  • Real Estate: If you’re interested in investing in a rental property or renovating and reselling a fixer-upper you can do so with a self-directed IRA.
  • Precious Metals: Investing in precious metals is an excellent way to diversify your investment portfolio mix.
  • Limited Liability Company: If you’re interested in supporting a startup or scale-up and earning profits for your future, this is an option for you.

Self-Directed IRA Restrictions

Like traditional investment accounts, self-directed IRAs are subject to the rules and regulations set in place by the Internal Revenue Service (IRS), including those in the Internal Revenue Code. These codes, which relate to the improper use of your IRA and to transactions with a disqualified person, are strictly enforced and prohibit self-dealing transactions and certain investments. For more information on self-directed IRA regulations, we strongly encourage you to consult with a legal professional.

Learn More About Self-Directed IRAs

Are you interested in taking control of your financial future? A self-directed IRA can give you the freedom and the control you’re looking for. Schedule a FREE 30-minute IRA strategy session with iPlanGroup.

A blue background with black lines on it.