Some options to consider…
Investing in income-generating properties through a self-directed IRA can provide stable cash flow and long-term appreciation while deferring taxes. Real estate often retains value or even appreciates during recessions, making it a reliable alternative to stocks.
Gold is traditionally viewed as a safe haven during economic instability. Adding physical gold or other precious metals to your retirement account can protect against inflation and currency fluctuations.
Energy investments, particularly in oil and gas royalties, can provide steady income even during economic downturns. These assets can offer high returns and are less correlated with the broader stock market.
Investing in tax liens through your IRA can be a profitable strategy, especially during times of economic distress. Tax liens often come with high interest rates and can lead to ownership of valuable real estate properties if the debt isn’t repaid.
Another alternative is equipment leasing, which can generate a consistent income stream. During a recession, companies often opt to lease rather than buy equipment, making this an attractive investment opportunity.
Farmland & Timberland: These tangible assets offer stable returns since the demand for food and timber remains consistent, regardless of economic conditions.
Distressed Debt: Purchasing distressed debt, such as non-performing loans or bonds, can provide high returns as these assets are often sold at significant discounts during economic downturns.
Private Lending: Offering short-term loans to individuals or businesses can yield high interest rates, especially when traditional lenders tighten credit. This can be an attractive option for generating income during a recession.
Infrastructure Investments: Investing in infrastructure, such as toll roads, utilities, and energy projects, can provide stable, long-term returns. These opportunities are accessible to individual investors through vehicles like infrastructure funds, REITs, and municipal bonds, offering a way to gain exposure to essential services with lower entry points.
Water Rights: As a critical resource, water rights can be a valuable investment during a recession. Owning water rights allows investors to sell or lease access to water, which can provide steady returns.
Renewable Energy Projects: Investments in renewable energy, such as wind or solar farms, can generate consistent income through power purchase agreements, even during economic downturns.
Art & Collectibles: While traditionally not allowed within IRAs, new securitized offerings make these assets investable within your retirement account, providing diversification and potential appreciation.
As you reassess your retirement strategy, consider these alternatives that have historically thrived in challenging economic times. A self-directed IRA offers the flexibility to explore these and other non-traditional investments, helping to build a more resilient retirement portfolio.
At New Standard IRA, we specialize in helping investors diversify their retirement accounts through alternative assets. Contact us now to speak with an IRA specialist to protect and grow your retirement savings, even in uncertain economic times.
