Next Generation Trust Company, a custodian of self-directed retirement plans, recently outlined how investors can incorporate aerospace and defense assets into self-directed IRAs. In a blog article, the company highlighted a range of alternative assets in the private space and defense sectors, including satellites, missile-defense systems, AI integration into space hardware, cybersecurity, and dual-use technologies with military and civilian applications.
The article notes that self-directed IRAs can hold private equity in aerospace companies, venture-backed defense tech startups, and space infrastructure. Other eligible assets include companies involved in research, manufacture, or sale of defense or aerospace products, as well as on-airport real estate and aviation infrastructure. These investments offer portfolio diversification beyond traditional stocks and bonds.
Jaime Raskulinecz, CEO of Next Generation, emphasized the growing importance of space infrastructure as a national security and economic priority. She stated, "With space infrastructure growing as a vital national security and economic priority, there are many ways for self-directed investors to build portfolio diversity with these growing investment opportunities."
The article cites Reuters reporting that private investment in the sector hit record levels in 2025, growing 48% to $12.4 billion, including $3.8 billion in the fourth quarter. Morgan Stanley's Space Team estimates the global space industry, currently around $350 billion, could reach over $1 trillion by 2040. This growth underscores the potential for self-directed IRA investors to participate in these emerging markets.
Raskulinecz advised thorough due diligence, noting, "Investors are wise to research all governmental regulations thoroughly before choosing an aerospace-related investment. As with any self-directed investment, due diligence is the watchword for any private placements or private equity firms under consideration." The article serves as a guide for investors seeking to navigate the complexities of including these assets in retirement accounts while adhering to IRS rules.
