As promised a couple of days ago, people have asked what can SD plans invest in. My question is more, "what can't they invest in?" Now realizing that that is a loaded statement. A previous blog post to real estate agents addressed this. IRS Code 1408 (a) does not tell us what we CAN invest in, it merely tell us what we CANNOT invest in. So, what are these excluded investments?
Life Insurance contracts, and
Collectibles. These include:
Artworks,
Rugs,
Antiques,
Metals,
Gems,
Stamps,
Coins,
Alcoholic beverages, and
certain other tangible personal property.
So, what can we invest in? Well, while not intended to be an all-inclusive list, the following sample will open up your mind to something your broker would prefer you not know. And, that is that the list is fairly endless....and it certainly goes beyond stocks, bonds and mutual funds.
As you explore your options in the self-directed world, ask yourself one question: "Do I want others (who may or may not have your best interests at heart) to control MY money, or do I want to take control of my assets and choose where to invest?" Remember, just because you go self-directed does not mean that you CANNOT invest in stocks, bonds and mutual funds....it just means that you have a lot more options available to you.
John R. Park is President of PGI SelfDirected (www.pgiselfdirected.com) and co-founding Partner of Fulcrum Investment Network (www.fulcruminvestmentnetwork.com).
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