Dean St. Marie, CFP®, AAMS
St. Marie Financial Advisors, LLC, Brevard, NC
The most common IRA investments tend to be mutual funds, which are popular for the offer broad diversification benefits they offer. For example, buying a mutual fund invested in Brazilian stocks would allow you to own just about every listed company in Brazil, which would be difficult to do otherwise.
Another common investment is individual stocks, which offer greater returns than mutual funds if the investment does well, but at the expense of higher risks and lower diversification. Individual stocks usually make more sense as an IRA investment when you have a larger account and can buy shares in many different companies.
Other investment choices can include rental real estate, precious metals, and private placements, but these are typically for more sophisticated investors.