Can I Use My Self-Directed IRA for Real Estate Investing?

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The funds deposited into individual retirement accounts (IRAs) are usually invested in financial products like mutual funds, stocks and bonds — but that doesn’t mean these are the only types of investments to which you’re allowed to allocate deposited funds. That’s especially true when it comes to non-traditional types of IRAs. Self-directed IRAs (SD-IRAs) allow users to invest in (almost) anything they want to.

Plenty of investors choose to use this unique IRA type to invest in real estate as a way of diversifying their retirement portfolios and potentially earning big in the process. To determine if this strategy may be an effective approach for you, learn more about how you can use your SD-IRA to fund real estate investments and how to decide if it makes sense for your portfolio.