Before we share three reasons why investors seeking a diversified portfolio should consider a self-directed IRA, let’s quickly define the term “self-directed.”

A self-directed IRA (or other retirement account) is technically no different than an IRA or retirement account you may already have or be familiar with.

But with one crucial difference.

The company that holds your IRA determines whether or not they will support alternative asset investments. Directed custodians such as Equity Trust specialize in the custody of alternative assets and enable you to invest in a wide array of assets beyond stocks and bonds.

Now that we have the basics covered, here are three ways a self-directed IRA could potentially help you diversify your portfolio.