Alternative investing has grown in popularity as investors look for ways to diversify beyond stocks and bonds. From private equity and real estate to crypto and collectibles, these assets can enhance returns and broaden portfolio exposure. They are especially powerful when included inside a tax-advantaged retirement account such as a Self-Directed IRA.
In this listicle, we will cover top platforms for alternative investing, explain what alternative assets are, outline who they are best suited for, discuss risks and considerations, and show how IRA Financial can help you invest in these assets within a self-directed retirement account.
What Are Alternative Investments and Why They Matter
Alternative investments are non-traditional assets that typically do not trade on public exchanges. They include real estate, private credit, venture capital, hedge funds, precious metals, crypto, and more. These assets can behave differently from stocks and bonds, which may reduce portfolio volatility and improve long-term returns.
Institutional investors have been allocating more capital to alternatives as public markets have become more limited and private markets have grown, which highlights their increasing relevance.
Why this matters: Alternative investments provide exposure to growth opportunities, potential inflation hedges, and diversification benefits that traditional portfolios may lack.
Top Alternative Investing Platforms
1. Willow Wealth (formerly Yieldstreet)
Willow Wealth is a leading alternative marketplace offering access to real estate, private credit, venture capital, art, legal finance, and more. The platform combines deep deal variety with accessibility for many investors.
- Highlights: Broad range of asset classes under one login
- Investor type: Accredited investors and select non-accredited offerings
- Considerations: Minimum investments and fees vary by deal
2. Fundrise
Fundrise focuses on real estate investments with low minimums, sometimes as little as $10. It allows everyday investors to access diversified property portfolios and venture-oriented funds.
- Highlights: Accessible real estate and private market investments
- Investor type: All investors, including non-accredited
- Considerations: Real estate investments usually require longer holding periods
3. Linqto
Linqto specializes in pre-IPO and private tech investments, offering exposure to fast-growing startups before they go public.
- Highlights: Access to private tech and startup opportunities
- Investor type: Mostly accredited investors
- Considerations: Higher risk and higher reward profile
4. iCapital
iCapital is an institutional-grade alternative marketplace offering hedge funds, private equity, real assets, and structured products.
- Highlights: Sophisticated platform with broad investment options
- Investor type: High-net-worth investors and advisor-led portfolios
- Considerations: Higher minimums and a need for investor sophistication
Who Should Consider Alternative Investments
Alternative assets are best suited for:
- Experienced investors seeking portfolio diversification
- Investors comfortable with less liquidity and longer time horizons
- Individuals targeting higher potential returns outside of public markets
These investments are generally not recommended for risk-averse beginners without a clear strategy due to complexity and longer holding periods.
Book a free call with a self-directed retirement specialist
- Review your self-directed retirement options
- Learn about investing in alternative assets
- Get all of your questions answered
Risks and Things to Consider
While alternative investing can be rewarding, it comes with unique risks:
- Illiquidity
Many alternatives are not publicly traded, which makes them harder to sell quickly. - Volatility and Complexity
Returns can vary widely, and careful research is essential. - Higher Risk of Fraud
In self-directed contexts, investors must evaluate opportunities themselves. Custodians do not vet or recommend specific investments. - Tax and Regulatory Rules
Alternative investments inside retirement accounts must comply with IRS rules. Violations can trigger penalties.
Investing Alternatives Through a Self-Directed IRA
A Self-Directed IRA lets you invest your retirement dollars in alternative assets while preserving tax advantages like tax-deferred growth or tax-free withdrawals in a Roth IRA.
Why use a Self-Directed IRA:
- Diversify retirement savings beyond stocks and bonds
- Grow investments tax-efficiently
- Retain greater control over investment choices
You need a qualified custodian to hold these assets because traditional brokers generally do not support alternative investments in IRAs.
IRA Financial and Alternative Investing
With IRA Financial, you can open a Self-Directed IRA and invest in platforms like Fundrise, iCaptial, or Linqto, or hold other alternative assets such as private equity, real estate, or crypto. IRA Financial provides the structure and support to hold these investments while keeping the tax advantages of a retirement account intact.
Whether you want to invest through a platform or bring your own alternative investment opportunities, IRA Financial can help you manage your Self-Directed IRA effectively.
About the Author
Adam Bergman is a tax attorney and the founder of IRA Financial, one of the largest Self-Directed IRA platforms in the United States. He has helped more than 27,000 clients take control of their retirement savings, overseeing over $5 billion in retirement assets. Adam is also the author of nine books focused on helping investors understand and confidently manage their retirement strategies.
This article is provided for informational purposes only and does not constitute investment, tax, or legal advice. Any rankings, ratings, or opinions expressed reflect the views of IRA Financial based on internal research, listed criteria, and publicly available data at the time of publication. Rankings are subjective and may not be suitable for all investors. Readers should independently evaluate all options and consult with qualified advisors prior to making financial decisions.
FAQs About Alternative Investing and Self-Directed IRAs
Can anyone invest in alternatives?
Some platforms accept non-accredited investors, but many private market deals are limited to accredited investors.
Are alternative investments risky?
Yes. They can be less liquid and more complex than traditional assets. Risk varies by asset type.
What are the minimums for investing in alternatives?
Minimums range widely, from as low as $10 on some platforms to tens of thousands for private deals.
Do Self-Directed IRAs have tax benefits?
Yes. Like traditional IRAs, Self-Directed IRAs can offer tax-deferred growth and, in the case of Roth IRAs, tax-free withdrawals.
