Energy consumption is on the rise, both nationally and globally, and many new energy companies are popping up to fulfill the increased demand. Growth in the alternative energy industry has increased the number of wind turbines and solar panels that provide power to our homes. The oil and natural gas industry is also still booming, with technological advances in shale extraction leading to more opportunities for expansion. All this growth has caused many of our self-directed IRA holders to ask us how they can take advantage of this emerging industry as part of their retirement portfolio.
Whether the energy industry is something you have previous experience with or it is a new interest you have developed, the IRS allows SDIRA holders to pursue their interests and use their personal agenda or strategy when investing. Your IRA can invest in energy in a number of ways, including lending funds to an energy start-up through promissory notes, purchasing shares of private stock, or forming a limited partnership.
As the price of fossil fuels has increased, the popularity of renewable energy sources has soared. Wind and solar energy are becoming major players in the energy game, presenting investors with the opportunity to not only take advantage of an emerging industry, but also to invest in “green” energy sources. Those SDIRA holders who are concerned about making socially responsible investments can utilize these environmentally-friendly energy sources for their retirement portfolio.
Increases in the demand for energy are creating an emerging industry that could create an investment opportunity for self-directed IRA holders. As the account holder, it is important for you to perform thorough due diligence when choosing a new investment. Doing so will help you protect your retirement and allow you to find the right investment for you.
