Invest in Stocks, Bonds, and Mutual
Funds Through a Self-Directed IRA
Invest in publicly traded investments in addition to alternative assets for greater diversity, all while paying less in taxes.
Self-directed IRAs are typically highlighted by the ability to invest in alternative assets such as real estate, cryptocurrency, or precious metals.
But did you know you can also hold and have full trading control over traditional, publicly traded assets like stocks, bonds, mutual funds, ETFs, and REITs, all while maintaining full tax advantages, even on capital gains?
These assets form the foundation of most long-term portfolios. Stocks provide capital appreciation. Bonds generate predictable income. Mutual funds, ETFs, and REITs offer diversified exposure across industries. All can grow inside your IRA without triggering annual capital gains taxes, regardless of how much you trade.
These assets sit inside your IRA, which means no annual capital gains tax and potential tax deductions or tax-free withdrawals, depending on whether you choose a Traditional or Roth SDIRA.
Why Invest in Stocks, Bonds, Mutual Funds, ETFs, and REITs with a Self-Directed IRA
Working with Horizon Trust, you can set up your self-directed IRA or 401(k) to invest in a wide range of traditional assets:
Stocks
Bonds
Mutual Funds
ETFs
REITs
Some benefits of setting up your SDIRA to invest in traditional assets with Horizon Trust include:
- Historically High Returns: Since its inception, the S&P 500 has averaged a 5%-10% positive return across time.
- Increased Diversification: Invest in individual stocks across different sectors or mutual funds, or ETFs that spread out exposure across different industries.
- Greater Familiarity: Stocks and securities tend to be more beginner-friendly, carrying less risk for investors.
- Higher Liquidity: Stocks and securities can easily be exchanged for capital when needed to invest in a property or an RMD.
Stop Letting Capital Gains Eat Into Your Returns
Frequent trading can create a hidden tax drag. Inside a Self-Directed IRA, gains compound without annual capital gains taxes.
5-Star Rated Custodian
Why Customers Count On Horizon Trust for Traditional Asset Investments
Easy Administrative Setup
Easy setup that allows you to start making timely market investments instantly.
Expert Account Support
Concierge experts on standby, ready to answer all account-related questions.
Exclusive Resources
Our Investment Corner platform gives users access to over a dozen award-winning investing platforms and partners.
Invest in Traditional Assets in 3 Simple Steps
Thanks to our fast onboarding and concierge support, Horizon Trust makes investing in traditional assets with a self-directed IRA easy.
Here’s how it works:
STEP 1
Set Up a Self-Directed Account
Contact us to set up a self-directed IRA or any other account. Only $595 for your first year.
STEP 2
Administer It to Invest in Traditional Assets
Request administrative support to start investing in traditional funds, and we’ll get you set up in no time.
STEP 4
Start Investing
Once established, you can direct us to make investments for your account using any of our available partner platforms.
Disclaimer
Horizon Trust Company is an independent passive Custodian and is not associated or affiliated with and does not recommend, promote or advise any specific investment, investment opportunity, investment sponsor, investment company or investment promoter or any agents, employees, representatives or other of such firms or entities. Investments are not FDIC Insured, offer no bank guarantee and may lose value.
Proven Success. Trusted Leadership. Real Impact.
At Horizon Trust, we make it simple to open and manage a Self-Directed IRA, so you can take control of your retirement on your terms. Founded by Greg Herlean, who has overseen more than $1.3 billion in real estate transactions, Horizon Trust was built by someone who understands what self-directed investors need: personalized service, fast transactions, and a custodian that stays out of your way.
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Learn About Self-Directed Stocks, Bonds, and Mutual Funds
What Are Stocks?
Stocks represent ownership shares in a company. When you invest in a stock, you become a partial owner (shareholder) and may benefit from the company’s growth through capital appreciation or dividends. Within a self-directed IRA (SDIRA), you can choose from a wide range of publicly traded or, in some cases, privately held company stocks. This allows you to build a portfolio that aligns with your investment goals, timeline, and risk tolerance — all within a tax-advantaged retirement account.
What Are Bonds?
Bonds are fixed-income securities that function as loans from investors to corporations, municipalities, or government entities. In exchange, the issuer agrees to pay interest at set intervals and return the principal at maturity. Holding bonds within an SDIRA can provide steady, predictable returns and balance risk in your retirement portfolio. Bonds are especially popular for investors seeking stability and income generation over long-term growth.
What Are Mutual Funds?
Mutual funds pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other assets. Managed by professional fund managers, mutual funds offer a convenient way to achieve diversification and professional oversight. When held in a self-directed IRA, mutual funds can simplify portfolio management, allowing investors to maintain tax-deferred or tax-free growth, depending on account type.
Self-Directed IRA Investing Rules for Stocks, Bonds, and Mutual Funds
Just like all self-directed IRA assets, stocks, bonds, and mutual funds must comply with IRS regulations. Failure to follow these rules can result in penalties that eat away at your bottom line.
Keep these rules in mind when investing in publicly traded securities through an SDIRA:
No self-dealing
You cannot buy or sell securities involving yourself or a disqualified person, such as a business you or a family member owns.
All transactions flow through the IRA
All investment purchases, dividends, and expenses must occur within the SDIRA. You cannot personally contribute or withdraw funds for these purposes.
Custodian involvement
All direct investments must be executed through your IRA custodian or administrator to ensure compliance and proper recordkeeping (this can be bypassed with checkbook control).
How to Fund Self-Directed Investments in Stocks, Bonds, and Mutual Funds
You can fund investments in your SDIRA in one of two ways: through a transfer or a rollover:
- Transfers move funds directly from one IRA to another of the same type (Traditional to Traditional, or Roth to Roth) without tax consequences.
- Rollovers move funds from a qualified plan, such as a 401(k) or 403(b), into your self-directed IRA. A direct rollover is generally preferred, as it avoids withholding taxes and ensures funds remain tax-protected.
Be sure to complete any indirect rollover within 60 days to avoid taxes or penalties.
Horizon Trust makes the process simple, allowing you to open your account and access funds within 5-10 business days to start investing for your future.
Your Future, Backed by Our Track Record
Trusted by investors nationwide to take control of their retirement through Self-Directed IRAs.
Helping clients grow and protect wealth across real estate, crypto, and private investments.