What Can You Actually Invest in With a Self-Directed IRA or Solo 401(k)?

When you think of retirement accounts, most people think of mutual funds, index funds, or maybe a few individual stocks. And while there’s nothing wrong with those options, they’re just a small part of what’s possible—especially when you have a Self-Directed IRA or Solo 401(k).

These accounts allow you to invest in a much broader range of assets, giving you the ability to put your retirement dollars into the things you know best—real estate, private companies, crypto, and more.

In this post, we’ll walk through some of the most popular investments Rocket Dollar customers make with their retirement accounts—plus real-world examples to spark ideas.

Wait—what’s a self-directed account?

A Self-Directed IRA (SDIRA) or Solo 401(k) works like a traditional retirement account but gives you full control over where your money goes. You still get the same tax advantages—either tax-deferred or Roth-style growth—but you’re not limited to just Wall Street.

Instead of picking from a short list of pre-approved funds, you can use your account to invest in a wide range of alternative assets, as long as you follow IRS rules.

So what can you actually invest in?

Here are some of the most common—and powerful—ways our customers are putting their retirement dollars to work:

1. Real Estate

Real estate is one of the most popular uses for a self-directed account. You can buy:

• Single-family rentals

• Multi-family units

• Commercial buildings

• Undeveloped land

Sarah used her Solo 401(k) to purchase a duplex in Austin, Texas. The rent from both units flows back into her Solo 401(k), helping her grow her retirement savings—tax-deferred.

Note:
You can’t live in or personally benefit from the property. All income and expenses must go through the retirement account.

2. Private Companies & Startups

With a self-directed account, you can invest in private companies and early-stage startups.

Whether you’re backing a friend’s business or investing through a platform like Wefunder or AngelList, these accounts let you get in early on businesses you believe in.

Michael invested $10,000 from his SDIRA into a startup through a crowdfunding platform. Any growth or exit returns stay within his IRA, completely tax-deferred.

3. Precious Metals

Gold, silver, platinum, and palladium can all be held in an IRA—as long as they meet IRS requirements and are stored in a qualified depository.

One of our customers purchased physical gold that’s stored securely at a licensed vault. They see it as a hedge against inflation and market volatility.

4. Private Lending

You can act as the bank by lending money from your IRA or Solo 401(k). These loans are often backed by real estate and can provide solid, predictable returns.

Lisa’s SDIRA funded a $50,000 loan to a real estate flipper. She earns 10% interest, which flows back into her IRA—no taxes due until she takes a distribution.

5. Cryptocurrency

Yes, you can hold crypto in a retirement account.

Rocket Dollar customers often set up their IRA or Solo 401(k) to access:

• Bitcoin

• Ethereum

• Stablecoins

• DeFi protocols and more

John allocated a portion of his Solo 401(k) to crypto and manages his wallet through a crypto exchange with institutional custody support.

6. Crowdfunded Real Estate

Don’t want to buy an entire property? You can still get real estate exposure through platforms like Fundrise or RealtyMogul that allow investments through an IRA or Solo 401(k).

Rachel invested $5,000 from her SDIRA into a diversified real estate fund that pays out quarterly income.

7. Tax Liens and Deeds

Some investors buy tax liens from counties and municipalities, earning interest while helping local governments recoup unpaid property taxes.

Dan used his SDIRA to purchase a tax lien at an auction. He earns 12% annually until the lien is repaid—and could potentially acquire the property if it isn’t.

Ready to take control of your retirement?

At Rocket Dollar, we make it easy to open a Self-Directed IRA or Solo 401(k), fund your account, and start investing in the assets that matter to you.