- This event has passed.
Private lending is an increasingly popular investment in IRAs. Your retirement account plays the part that a bank would in extending loans to those seeking funds. The borrower can use this capital to purchase a home, a car, etc.
These transactions offer great benefits for all parties involved. Your IRA earns tax-sheltered income on the interest of the loan, and the borrower is able to get needed cash and bypass the hassle of mainstream lending institutions.
As the IRA owner:
- you call the shots by choosing who your IRA lends money to
- you get to set the repayment terms of the loan
- you can decide if you’ll extend a secured loan backed by collateral or an unsecured loan with a higher interest rate.