Best Investment Vehicle for Self Directed IRA
Real Estate is certainly a great vehicle to invest because of the various tax benefits associated with it. However, if you invest with pre-tax money, some of those rules may not apply, for example depreciation tax write-off. I know many people buy real estates with their IRA money, but I have heard someone told me that it's not the best vehicle. I also know from experience that it's pertinent to keep ample cash reserves while investing in RE for unexpected repairs, etc. This means that someone should not buy the most expensive property they can afford with SDIRA, but maybe only at 80% IRA worth and 20% reserve. But this means that you are not fully invested, not all of your money is working. I am certainly novice in this area, and would love to learn more.
What would you consider to be the best SD-IRA investment vehicle with it's tax implications? Common paper assets, stocks, mutual funds? Buying rental properties? Performing notes/private lending? Non performing notes? Empty land for long term appreciations?
What would you recommend if your IRA is worth 20k, or 100k or 1M?
Thanks in advance!