Self-directed individual retirement accounts are growing, reports the New York Times, as many middle-aged investors are moving their money from traditional stocks and bonds into more experimental holdings.
In an article in today's edition, Dalia Fahmy writes that these IRA owners "have amassed enough money in their retirement accounts to permit some experimentation." That includes putting their nest egg into "off-beat ways of generating rental income," such as "private jets that can be leased out, race horses that generate prize income and bulls that are in demand among cattle breeders."
Self-directed IRAs still carry the same tax advantages as the more conventional retirement investments, notes Fahmy. But they also pose significant risks.
You can get the full scoop on the pros and cons of atypical IRAs here.