Investing with Self-Directed IRAs Made Easier with Real Estate Debit Card | Millennium Trust Company

Investing with Self-Directed IRAs Made Easier with Real Estate Debit Card

August 12, 2020
By Millennium Trust

When it comes to investing, particularly in alternative assets, real estate is usually one of the more commonly known options. From single-family rentals to REITs to undeveloped land, many people invest in real estate as a “hobby” and/or for extra income (i.e. flippers or landlords).

Though many investors are familiar with real estate, something you don’t learn on HGTV is that you can invest using your retirement dollars in a self-directed IRA (and many financial advisors don’t know this either).

In fact, the late 2018 Millennium Trust Investor Survey revealed almost half of those surveyed have a minimum of 25% of their total assets in some sort of real estate investment, but 92% also said they don’t hold real estate in an IRA.

Clearly interest in real estate investments is there, but education surrounding using your retirement portfolio is not. Let’s talk a bit about holding alternative investments, like real estate, in a self-directed IRA and how Millennium Trust’s new real estate debit card makes the experience easier.

Benefits of Holding Alternative Investments, Like Real Estate, in a Self-Directed IRA

Volatile markets, especially like what we’ve been experiencing over the last year, serve as a reminder of the importance of proper asset allocation and portfolio diversification.

Alternative investments offer:

  • Low correlation to stocks and bonds, which limits downside risk. Alternatives usually are not priced on a daily basis. This means investors experience less price volatility than the stock market. It also often means that alternatives cannot be liquidated as quickly as publicly-traded assets.
  • A hedge against inflation because they are typically not correlated with fixed-income or equity investments.

Real estate, specifically, can be used to generate rental income, and rents can be raised over time to keep pace with the market. Rising prices can increase the resale value of real estate.

Self-directed IRAs offer: 

  • Tax-deferred growth (in a traditional IRA)
  • Tax-free withdrawals (in a Roth IRA)
  • Flexibility with more investing options
  • Control with direct ownership of assets

Paying for Property Expenses Made Easy with Millennium Trust’s New Real Estate Debit Card

There are many IRS rules and regulations associated with investing in real estate in a self-directed IRA. Millennium Trust has 20 years’ experience with alternative assets, and has over $30 billion total assets under custody. We know real estate, and we know investors want the most streamlined experience when investing.

Our new real estate debit card makes it easier for investors to pay expenses, such as miscellaneous repairs or maintenance, associated with an investment property held in a self-directed IRA. No more manually cutting checks – simply use the portal or app and direct the funds. (Note that the debit card is an option if all properties in your IRA are owned 100% by your IRA. And, the IRS Prohibited Transaction Rules still apply).

Investing can seem like an intimidating experience, but we are here to help make the process as smooth and convenient as possible. Be sure to talk to your tax and financial advisors about what is right for you.

Questions about the real estate debit card? Reach out to

Learn more about real estate in self-directed IRAs at Real Estate IRAs: Just the Facts.

The material in this blog is presented for general informational purposes only. The information presented is not investment, legal, tax or compliance advice. Millennium Trust Company performs the duties of a directed custodian, and as such does not offer or sell investments or provide investment, legal or tax advice.

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