Self-directed IRA investors seeking portfolio diversification beyond traditional stocks and bonds can consider cell tower leases and related infrastructure as alternative real estate investments. According to Jaime Raskulinecz, CEO of Next Generation Trust Company, these assets represent critical wireless communication infrastructure typically leased by major carriers for terms ranging from five to 30 years, with towers often supporting multiple tenants for enhanced revenue potential.
The wireless infrastructure sector represents substantial investment activity, with the Wireless Infrastructure Institute reporting over 154,800 purpose-built towers and 445,900 macrocell sites and outdoor small cells in operation during 2024. U.S. wireless infrastructure investment exceeded $63 billion that year, indicating significant sector growth. Investors can access this asset class through various structures within self-directed retirement accounts, including IRAs, health savings accounts, solo k plans, and Coverdell education savings accounts.
Beyond direct lease investments, self-directed IRA holders can diversify by purchasing ground leases for existing towers or investing in publicly traded tower REITs (real estate investment trusts) and infrastructure funds specializing in this real estate segment. These investments offer potential benefits including contractual passive income streams, inflation hedging characteristics, and reduced correlation with traditional market volatility. A recent blog article published on the Next Generation website outlines these benefits and considerations for investors exploring this niche real estate category.
The same article discusses billboard investments as another niche real estate option sharing similar characteristics with cell tower investments, including contractual income structures and inflation hedging potential. Both asset classes represent specialized real estate investments that self-directed investors can incorporate alongside more traditional alternative assets like residential or commercial properties. More information about self-direction as a retirement wealth-building strategy is available at https://www.NextGenerationTrust.com.
For investors considering this asset class, understanding the specific structures and requirements for including cell tower investments in self-directed retirement accounts is essential. These investments represent long-term commitments aligned with wireless industry growth and infrastructure expansion, offering potential portfolio diversification benefits for retirement-focused investors seeking exposure to telecommunications infrastructure. The full article discussing cell tower and billboard investment opportunities can be accessed at https://shorturl.at/s68Z8.
