David Moore, co-founder of IRA Advantage, has spent decades helping investors think differently about real estate, retirement accounts, and the long-term impact of tax structure. At the start of 2026, one theme continues to surface. Investors are tired of Wall Street’s volatility and are looking for more control.
Recent market swings make that frustration easy to understand. Sharp drops followed by sudden rebounds create uncertainty, especially for people nearing retirement. When markets move based on headlines instead of fundamentals, many investors start asking a simple question. Is there another way to invest retirement money?
For many, the answer is diversification into tangible assets.
The Appeal of Hard Assets Inside Retirement Accounts
David explains that people come to IRA Advantage because they want access to investments Wall Street does not typically offer. These include real estate, private lending, precious metals, and business investments. Not REITs or packaged products, but direct ownership structures.
Real estate and precious metals are tangible assets. They are often viewed as inflation hedges and tend to move differently than publicly traded markets. Real estate is also illiquid, which means it does not experience the same daily price swings as stocks.
That illiquidity can be a feature, not a flaw, when stability matters.
Self-Directed Retirement Accounts Are Not New
Self-directed retirement accounts have existed since retirement accounts were introduced in the mid-1970s. They are not a special type of IRA. The term simply describes an account that allows the owner to invest in anything the law allows.
Unless an investment is prohibited, it is allowed.
For IRAs, the prohibited investments are collectibles, life insurance contracts, and stock in a Subchapter S corporation. For 401k plans, the restriction is collectibles. Everything else is determined by structure and compliance.
Control Comes With Responsibility
With greater flexibility comes greater responsibility. David emphasizes that self-directed accounts give the account owner the power of the pen. That means decisions happen quickly, sometimes instantly, especially with checkbook control structures.
The downside is that mistakes can be costly.
A prohibited transaction inside an IRA causes the entire account to be treated as distributed as of the first day of that year. A prohibited transaction inside a 401k plan only affects the money involved. Same mistake. Very different consequences.
That difference alone is why planning and structure matter.
Understanding Disqualified Parties
Many problems arise not from the investment itself, but from who is involved in the transaction. A disqualified party includes the account owner, their spouse, lineal ascendants and descendants, their spouses, and entities they control.
Transactions between or for the benefit of disqualified parties are prohibited.
This means you cannot personally tie up a property and later assign it to your retirement account. Even removing a property from the market for future benefit can trigger a prohibited transaction. The structure must be in place before the deal begins.
Required Minimum Distributions (RMDs) and Illiquid Assets
Required Minimum Distributions (RMDs) often raise concerns when retirement accounts hold real estate or other illiquid assets. What happens if there is no cash to distribute?
David explains that RMDs can be satisfied through in-kind distributions. Instead of distributing cash, the account can distribute a portion of the asset itself. Minority interests may also be discounted, which can reduce the taxable value of the distribution when structured properly.
This is where tax planning becomes essential.
Leverage Inside Retirement Accounts
Another common misconception is that retirement accounts cannot use leverage. They can, but the loan must be non-recourse. The lender can only rely on the asset itself, not the account owner’s credit or income.
Leveraged investments may create unrelated business taxable income, including inside Roth accounts. This is not a reason to avoid leverage, but a reason to understand it before using it.
The Four Core Retirement Structures
IRA Advantage uses four primary structures for planning retirement accounts: basic self-directed IRAs, checkbook IRAs, solo 401ks, and rollover business startups.
A basic self-directed IRA involves moving funds to a custodian that allows alternative investments. In this arrangement, the custodian holds the title and processes transactions. These accounts work best for infrequent, non-time-sensitive investments.
A checkbook IRA adds an IRA-owned limited liability company. Unlike a basic self-directed IRA, the account owner serves as manager and gains immediate control of the funds. This structure works well for real estate, lending, and situations where speed matters.
A solo 401k is designed for self-employed individuals with no employees other than a spouse. It offers high contribution limits, broad investment flexibility, and the ability to borrow from the plan.
A rollover business startup combines a 401k plan with a C corporation. This structure allows individuals to start or buy a business, work in that business, and receive compensation, all without triggering taxes or penalties when done correctly.
Planning Protects What You Built
Self-directed retirement accounts are long-standing tools that allow investors to align their retirement money with assets they understand and control. They offer flexibility, but they also expose retirement funds to unnecessary risk when structure and timing are ignored.
The key is doing the work upfront. Structure the account before the deal. Understand who can and cannot be involved. Build in liquidity and plan for distributions long before they are required. These steps protect the tax advantages that make retirement investing worthwhile in the first place.
If you are considering how to diversify your retirement assets or want more control over where your qualified funds are invested, reach out to IRA Advantage today to speak with an expert and explore which structure fits your future investment goals.
The Guys With All The Answers…
David and Thomas Moore, the co-founders of Equity Advantage & IRA Advantage
Whether working through a 1031 Exchange with Equity Advantage, acquiring real estate with an IRA through IRA Advantage or listing investment property through our Post 1031 property listing site, we are here to help Investors get where they want to be. Call them today! 503-635-1031.
