How to Invest in Land with a Self-Directed Retirement Account
Retirement planning is no longer just about stocks and bonds. More investors are turning to self-directed retirement accounts to diversify their portfolios and gain access to tangible, income-generating assets like raw land.
In this guide, we’ll explore how you can use a self-directed IRA to invest in land, why this strategy makes sense for long-term retirement growth, and how Land Ally helps you transition from holding inherited land to actively building wealth.
What Is a Self-Directed Retirement Account?
A self-directed IRA (SDIRA) is a type of retirement account that allows you to invest in a broader range of assets beyond traditional securities. Unlike standard IRAs or 401(k)s, self-directed IRAs let you invest in:
Raw land and real estate
Private placements
Precious metals
Cryptocurrencies
And more
You still benefit from the tax-advantaged growth of a traditional or Roth IRA, but with far more flexibility in your investment choices.
Why Invest in Land Through a Retirement Account?
Land offers a unique combination of benefits that align well with retirement goals:
1. Stability and Security
Land doesn’t fluctuate like stocks. It’s a tangible asset that holds value even during market downturns.
2. Long-Term Appreciation
Depending on location, land often appreciates over time as nearby areas develop or become more desirable.
3. Passive Income Potential
You can lease land for agriculture, cell towers, billboards, or recreational use. This income flows back into your SDIRA tax-deferred or tax-free, depending on your account type.
4. Diversification
Adding land to your portfolio protects your retirement savings from the volatility of Wall Street.
How to Invest in Land with a Self-Directed IRA
Step 1: Open a Self-Directed IRA
You’ll need a custodian that specializes in self-directed IRAs. Some popular choices include:
Ensure they allow real estate and land investments.
Step 2: Fund Your Account
You can fund your SDIRA through a rollover, transfer, or contribution. Once funded, you’re ready to invest.
Step 3: Choose Your Land Investment
You can either:
Buy land directly using IRA funds
Use proceeds from selling existing property, such as inherited land, to reinvest in IRA-approved land
This is where Land Ally comes in.
Turning Inherited Land into a Retirement Opportunity
Many landowners come to us with property they no longer want, often inherited and unmanaged. By selling your inherited land to Land Ally, you can:
Convert a non-income-producing asset into liquid funds
Use proceeds to invest through a self-directed IRA
Continue growing your retirement nest egg
We buy land in all 50 states and specialize in direct purchases without agents or commissions. Our free land value estimator helps you determine what your property is worth, and our guide walks you through the entire process.
A Real-World Example: Diversifying Retirement with Land
Carla inherited 12 acres in Arizona from her grandfather. Unsure of what to do, she contacted Land Ally, who gave her a fair offer and helped her navigate the probate process. Carla used the proceeds to fund a self-directed Roth IRA, then purchased 8 acres near a developing industrial corridor. Today, that land is leased to a solar company, earning her tax-free income for her retirement.
Final Thoughts
If you're looking for a way to generate passive income, reduce stock market exposure, and build a more diversified retirement portfolio, investing in land through a self-directed IRA may be the answer.
And if you currently own inherited land, now is the perfect time to consider how to put that asset to work. Let Land Ally help you sell your land quickly, fairly, and without hassle—so you can reinvest in your future.
Start today:
Use our land value estimator
Download our free guide
Or visit Land Ally to learn how we can help
Disclaimer: This article is for informational purposes only. Please consult a financial advisor or tax professional before making retirement investment decisions.
