A self-directed IRA is a type of individual retirement account that allows investors to hold a broader range of investments, such as real estate, private equity, and precious metals, beyond the traditional stocks, bonds, and mutual funds.

Investment options in a self-directed IRA include real estate, private equity, limited partnerships, tax lien certificates, precious metals, and more. However, these options depend on the custodian and applicable regulations.

The risks of a self-directed IRA include a lack of liquidity, higher potential for fraud, complex rules that can lead to penalties if violated, and the need for thorough due diligence on non-traditional investments.

Yes, restrictions include investments in collectibles, life insurance, and transactions with disqualified persons, such as the account holder or certain family members. Violating these rules can result in penalties and taxes.