Self-directed investors already know that real estate is one of the most popular alternative assets allowed in a self-directed IRA (SDIRA). A niche within the real estate market that may be included in a SDIRA is cell towers, such as cell tower leases or other tower-related investments.
"Cell towers are critical infrastructure for wireless communication, leased by major carriers to host their equipment for anywhere from five to 30 years. Plus, the towers can support multiple tenants, making them good long-term investments," said Jaime Raskulinecz, CEO of Next Generation Trust Company, a custodian of self-directed retirement plans. Its sister firm, Next Generation Services, provides full account administration and transaction support.
Cell towers are the tall macrocell structures that resemble TV and radio towers as well as small cell structures in public spaces. The Wireless Infrastructure Institute reported that in 2024, there were more than 154,800 purpose-built towers and 445,900 macrocell sites and outdoor small cells in operation, and investment by the U.S. wireless infrastructure sector was over $63 billion.
Cell tower investment offers several benefits to self-directed investors, who may include a broad array of alternative assets in their IRAs, health savings accounts, solo k plans, and Coverdell education savings accounts. These benefits and other factors regarding this asset class are outlined in a recent blog article published on the Next Generation website.
"Other ways to diversify a self-directed retirement portfolio with this asset class are for the self-directed IRA to purchase and own the ground lease of the existing tower itself, or invest in a publicly traded tower REIT (real estate investment trust) or infrastructure fund that specializes in this growing real estate asset class," added Raskulinecz.
The article also shares information about another niche real estate investment—billboards. Like cell towers, investing in billboards offers a hedge against market volatility and inflation and can deliver steady, contractual passive income over the long term.
More information about self-direction as a retirement wealth-building strategy is at Next Generation Trust Company.
