Solo 401(k) Investment Options

Start saving the self employed way with Ubiquity's Single(k)® plan.

  • Invest in a wide range of investment options through a self directed brokerage account at any financial institution of your choice
  • Reduce your taxable income with Traditional or Roth options
  • Get access to funds through a loan option
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Solo 401(k) plans offer more flexible investment options than company-sponsored 401(k)s.

Most people turn to stocks, mutual funds, and bonds, but additional opportunities exist in real estate, precious metals, foreign currencies, and more. Owners can act as plan trustees to choose and invest in funds from a number of different categories to maximize retirement savings. Very few types of investments are expressly prohibited.

Investment Options with a Solo 401(k)

Solo 401(k) investment options can include:

Real Estate

Solo 401(k) funds can be used to purchase residential, commercial, domestic, or foreign real estate. You can buy raw land deeds or mortgages as well. These investments can be made simply by writing a check from your 401(k) plan bank account.

Real estate purchases are an ideal investment, as all gains are tax-deferred until a distribution is taken, which could be as early as age 55 or as late as 72. So, for instance, if you purchased a property for $100,000 and sold it for $300,000, the $200,000 in gains would not be taxed. By contrast, a real estate sale using personal funds would be subject to federal and state income taxation.


Purchasing a tax lien is as easy as writing a check. You can make a purchase of a lien in the residential or commercial sectors as you wish, without custodian consent. Tax liens are a riskier type of investment, but they can sport high yields well into the double-digits. These gains remain tax-free until distribution.

Loans & Notes

Beyond real estate, you can also purchase mortgage, car, credit card, or student loan notes from third parties or make loans to a friend. All interest received in these transactions gets absorbed by the plan, tax-free. With collateral involved for the debtor, most of these debts are paid back at rates of 12-18 percent.

Private Companies

You could be a venture capitalist or angel investor for a Limited Liability Company, Limited Liability Partnership, C Corporation, or S Corporation. You’ll need to be mindful of IRC 4975 rules for “disqualified person” and “prohibited transaction,” as well as the unrelated business taxable income rules under IRC 512. However, investing in startups, bankrupt firms, second-level capital acquisitions, or growth industries can give you the opportunity to influence operational decisions and make significant returns.

Precious Metals and Coins

Investing in precious metals and coins can exceed inflation rates better than other types of investments, producing impressive tax-free gains over the years. These investments can be diversified and offer great liquidity. There is still a place for traditional gold and silver in a precious metals portfolio, but the opportunities don’t end there; silver, platinum, palladium, and bullion are other popular options.

Foreign Currencies

The Swiss franc, Canadian dollar, Australian and New Zealand dollars, Japanese yen, and the South African rand are among some of the top-traded foreign currencies today. Currency appreciation is an important part of development for emerging markets.

Stocks, Bonds, and Mutual Funds

Most investors choose a mixed bag of stocks, mutual funds, and bonds. Purchasing stocks gives you a stake in the ownership of a company, which can reflect your personal values and interests. As the company grows, so does your retirement nest egg. Though the stock market can rise and fall in value, and the prices of individual stocks rise and fall daily, investments in stable companies often pay handsome profits over the long-term.

You can leverage growth in different sectors of the economy by “diversifying” – or, in other words, purchasing many different types of stock. Some stocks pay short-term dividends that give you immediate capital.

Mutual funds are the most popular investment choice in America, as they offer fair pricing, reduced risk, convenience, advanced portfolio management opportunities, and dividend reinvestment potential.

Bonds are a more risk-averse way to store your money and generate a stable, consistent return. Similar to a savings account, CD, or money market account, you can expect to receive interest back on your investment – and at a higher rate.

To learn more about the investment strategies of top Solo 401(k) plans, contact Ubiquity. Let us help you set up and manage your Solo 401(k) plan for a low, flat, monthly fee.

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44 Montgomery Street, Suite 300
San Francisco, CA 94104
Support: 855.401.4357

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© 2023 Ubiquity Retirement + Savings
Privacy Policy
Do not sell my info
44 Montgomery Street, Suite 300
San Francisco, CA 94104
Support: 855.401.4357

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