Spice Up That IRA

What's in your individual retirement account? It's a safe bet that you've invested in mutual funds, stocks, bonds, and maybe even in a bank certificate of deposit or money market fund. But if you've built up substantial sums in your IRA -- either from wise investing, or from rolling over 401(k) plans from previous employers -- maybe it's time to graduate to some more sophisticated investments.

Federal laws restrict investments in life insurance and collectibles inside an IRA. You can buy gold and palladium bars, but you can't invest in collectible coins, with the exception of certain gold and silver Eagle U.S. coins minted by the federal government. You can't buy artwork, gems, carpets, alcoholic beverages or stamps inside your IRA.

But you are allowed to buy investment real estate, ranging from condos to partnerships to farms, or shares in non-public companies inside an IRA. Few people do this, however, simply because of the perceived difficulty of finding an independent custodian to hold the property and value it each year. ...