5 Eco-Investments You Can Hold in Your Self-Directed IRA
The world we live in is transforming, and the markets are shifting right alongside it. There’s a persistent myth that eco-investments aren’t as profitable as traditional companies, but that’s proving to be untrue— a recent Harvard Business Review sustainability study has shown that over the next two decades, companies that demonstrate a commitment to environmental responsibility will likely outperform companies that don’t, because they’ll be prepared against new regulations and unknown market pressures.
With the landscape we find ourselves in, there are so many opportunities to make eco-friendly choices while building wealth in all areas of our lives— even when saving for retirement.
Investors can make the choice to invest sustainably in every arena— and with your self-directed IRA, you can truly choose the right investment for you and the environment.
Here are 5 types of eco-investments to consider when investing:
You can use your self-directed IRA to invest in all sorts of alternative energy solutions— from wind turbines and hydro-technology to nuclear energy. Investing in these growing sectors is a way to put your money where your mouth is— helping the environment while still making an investment for your future. You aren’t limited to the typical investments either— renewable energy is another growing sector, leaving you with a number of different options and companies to consider when considering investing in green energy.
Raw Land & Energy Efficient Real Estate
You can invest in raw land or energy efficient properties to get your foot in that rising real estate market without contributing to a rising carbon footprint. More buyers and renters are taking eco-consciousness into account when picking a home, so these options are on their way to becoming standard. You can think about buying space to develop, updating an existing property, or investing in a pre-existing eco-property to make your green dreams come true— while still saving for your own future.
Relevant: Purchasing Investment Property with an IRA - Direct Purchase Strategy [GUIDE]
Cleaner, Greener Transportation
You can also invest in alternative transportation methods to help move us towards a cleaner and brighter future. Whether that be towards more fuel-efficient and cleaner cars, trains, and buses, bike initiatives, or even driverless modes of transit, you can invest AND work to move us to a greener future for all. With the recent explosion of growth in this arena, the options are endless!
You can invest in green bonds to help encourage development in underutilized areas. Green bonds is short for "qualified green building and sustainable design project bonds". These bonds are issued by federally qualified municipalities and organizations to help with the sustainable development of these sites. They are specifically aimed at projects dealing with energy efficiency, pollution prevention, protection of ecosystems, and sustainability of multiple types.
Private Placements/LLCs with a Mission (SRIs — Socially Responsible Investing)
You can use your self-directed IRA to invest in companies with a sustainable mission you believe in. Eco-investments are no longer limited to just green energy— nowadays, there are tons of companies developing technology and working towards a sustainable future in every sector. There’s bound to be one that touches on your personal passion projects. If you have a personal interest in water access for all, there are companies you can get involved with, or if you care deeply about biodegradable plastics, there’s likely more than one choice out there. Your retirement fund could be used to invest in the future of the world and the environment, all while planning for your own future at the same time.
Relevant: How to Invest in Real Estate with an IRA LLC
If you’re looking to make eco-conscious investment choices, opening a self-directed IRA with IRA Resources is an excellent option. You have the freedom to select investments that are truly environmentally friendly, meeting the needs of our changing world all the while saving for your retirement.
Do you have any questions you’d like answered? We’re here to help! Please reach out and an IRA Resources representative will be glad to assist in any way possible.