What is the Safest IRA Investment?

What is the safest IRA investment

An Individual Retirement Account, or IRA, provides tax-advantaged investment accounts that allow individuals to save for retirement with tax advantages. Traditional IRAs tend to offer greater advantages; those expecting lower tax brackets in retirement should select Roth IRAs instead.

An Individual Retirement Account, or IRA, offers several secure investments such as money market accounts and certificates of deposit. Furthermore, stocks and bonds may also be added.

Real estate

Real estate can be an excellent retirement account investment because it is a hard asset that tends to appreciate over time and provide steady rental income. However, CPAs must understand all applicable rules and regulations regarding IRA investments to properly advise their clients. When considering investments for their IRA accounts they should prioritize investments with established markets such as stocks, mutual funds and certificates of deposit as opposed to collectibles or real estate that may pose liquidity issues in retirement.

If you want to invest in real estate, search the stock market for REIT funds – these companies own and finance real estate investments.


Stocks are an attractive asset to invest in an IRA due to their low risk and potential high return. But stocks do carry certain risks, including the chance that an issuer could go bankrupt and you lose all your savings.

Savings accounts, Treasury bills and bonds are relatively secure investments but offer limited returns compared to inflation. Furthermore, their interest rates simply cannot keep pace.

Self-directed IRAs enable investors to invest in alternative assets such as real estate, precious metals and other commodities, private placement securities, promissory notes and crypto assets – each with its own set of risks associated with lack of information and liquidity.


If you’re searching for an investment option that provides secure returns, bonds could be the ideal solution. Issued for limited terms with fixed interest rates, bonds offer guaranteed return of your money with predictable repayment.

A high-yield savings account is another safe investment option, though its interest payments (on average approximately 0.06% in April 2022) tend to be relatively modest. Other safe investments include Treasury securities and TIPS that protect against inflation.

But it’s important to keep in mind that self-directed IRAs typically feature limited disclosure and liquidity due to custodians not verifying financial information or audit records.

Money market accounts

Money market accounts offer higher interest rates than traditional savings accounts and may include check-writing capabilities and debit card access for easy fund withdrawal. It is wise to compare rates offered by money market accounts with CDs or high yield savings accounts before deciding between one or the other.

When choosing a money market account, be sure to compare minimum balance requirements and fees carefully. Aim for those with low monthly maintenance fees as well as those that feature low or no minimum balance requirements; additionally consider higher withdrawal limits that could prevent overdrawing of your account.

Mutual funds

If you prefer investing passively with a diversified portfolio, IRA mutual funds could provide reliable returns even during down markets and yield higher interest rates than savings accounts or CDs.

Target-date funds provide another great solution, automatically allocating assets as retirement draws nearer. They offer an accessible diversified portfolio that’s fully managed.

If you’re searching for an inexpensive online brokerage, E*TRADE or TD Ameritrade offer commission-free stocks, ETFs and mutual funds; for easier management of an IRA consider Wealthfront or Betterment as alternative solutions.

Peer-to-peer lending

Certificates of deposit (CDs), Treasury bonds and annuities are the safest investments for an IRA account, providing a fixed return over a specific time.

Peer-to-peer lending websites facilitate loans between people looking for funds and investors willing to lend them directly, bypassing banks and traditional lenders as intermediaries and providing access to funding sources that might have denied loans before.

But alternative investments may present special risks and disclosures; custodians that allow self-directed IRAs may not independently verify financial information for these types of investments.

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