Tax Smart Wealth Strategies

Part 5 — How Self‑Directed Accounts Expand Your Options

Self‑directed retirement accounts open the door to real estate, private lending, private equity, and other alternatives — while giving you control over when taxes apply.

Why self‑directed accounts matter

Most investors think retirement accounts can only hold stocks, bonds, and mutual funds. But a Self‑Directed IRA (SDIRA) or Solo 401(k) dramatically expands your investment universe.

• Real estate
• Private lending
• Private equity
• Precious metals
• Cryptocurrency

How alternative assets behave

Alternative assets often generate income that is taxed annually in a regular brokerage account. Inside a self‑directed retirement account, that income can grow tax‑deferred (Traditional) or tax‑free (Roth).

Traditional vs. Roth SDIRA

• Traditional: Contributions may be deductible, growth is tax‑deferred, withdrawals taxed later.
• Roth: Contributions are after‑tax, growth and qualified withdrawals are tax‑free.

Key Takeaways

• Self‑directed accounts expand your investment options.
• Alternative assets behave differently in taxable vs. retirement accounts.
• Traditional vs. Roth structures change tax timing.
• Uninterrupted compounding is a major advantage.