Investing in Theatrical Productions, Movies and TV Shows Through a Self-Directed IRA

Published on December 23, 2025

You might not have the experience to be a theatre or movie director, but you can direct your investments toward theatrical productions and other creative output with a self-directed IRA. (And if you work quickly now, you might be able to invest in a Broadway show before this season ends!).

Using funds in a self-directed IRA to finance a live show, an independent film, or TV program is an interesting way to cultivate your creative side—and develop a more diverse retirement portfolio. Given the ever-increasing proliferation of streaming services and the content they deliver you may find numerous opportunities to invest in productions of all kinds and align your investments with your interest in the performing and visual arts.

How to invest in a Broadway show

Investing in this alternative asset means your self-directed IRA purchases a share of a production’s capitalization. The Broadway show forms an LLC for financing and producing the specific production and investors are limited partners in the LLC. The lead producer is the managing member/general partner. A play may need anywhere from $3-$10 million to mount while musicals require $12-25 million or more (the big spectacle musicals may cost upwards of $50 million to open!).

When the show opens, the self-directed IRA gets back its initial investment from net operating profits (paid a pro-rata share of the profit until 100% of the initial investment is recouped). Revenue from merchandise, tours and other licensed productions, and other factors may contribute to the profit distributed to investors.

Of course, the hope is that the show has a long, successful run that will yield passive income for the account for many years, with net profits usually split 50/50 between the investors and the producers in perpetuity.

Investing in film production

Self-directed IRAs can become part of a film’s financing at any stage, from development to distribution. Financing is needed to secure the intellectual property and script development, put together production and creative teams, acquire film equipment and build or rent sets, and post-production (such as film editing and laying in special effects). The IRA can also be an angel investor in a film production company seeking funds for expansion.

Other types of film-related investments include:

• Film distribution companies – this provides short-term capital for distributors to acquire films before licensing them to networks and streaming services, and finances a film’s release and marketing.
• Funds that invest in production companies (film, theater) – such as partnerships or LLCs that finance productions, often structured as private placements
• Film markets and festivals
• Independent cinemas, community theaters, studio and other “maker” spaces

Investor beware: While the potential for significant returns is attractive, there is always the risk of the finished product being a box office flop, with the potential for loss of much of or the entire investment.

Remember that, as with any self-directed investment, the account owner and disqualified individuals cannot personally gain from the alternative asset, such as being a performer in or director of a production. Self-dealing and other prohibited transactions endanger the IRA’s tax-advantaged status.

Also be aware that the income the investment generates might be subject to unrelated business income tax (UBIT) if it is considered active business income (often triggered by real estate activities that are not passive in nature). We recommend you consult a trusted tax adviser before making an investment that could result in UBIT to be adequately prepared to cover that tax.

As always, if you have questions about the many options and benefits available by including alternative assets within a self-directed IRA, you can contact our helpful team at NewAccounts@NextGenerationTrust.com or 888.857.8058 during regular business hours.