By J.P. Dahdah, Founder & CEO of Vantage
It used to be that most fixed income portfolios were generic. Most people had the same types of investments and had them in similar proportions. In recent years, investors have realized that many portfolios could perform at a higher level if diversified and modernized into alternative investment options.
Let us look at those two concepts separately.
Diversifying your fixed income portfolio is something most investors are familiar with but may not understand the specifics.
Diversifying your portfolio means that your selection contains many different types of investments that mature at different rates so that you will always have streams of passive income coming in and you will have money available to invest on a regular basis.
Modernizing your portfolio is a little different. Traditionally, retirement accounts are made up of stocks with some long-term bonds. Savvy investors know that this is not the best option anymore because the long-term yields are not much more than the short-term yields. This means that you can modernize your fixed income portfolio by investing in shorter-term bonds and other options. Alternative investment options to consider are:
- Trust deeds
- Secured notes
- Discounted notes
- Private mortgages
Now could be a good time to invest in alternative fixed income strategies secured by real estate.
If you have a Self-Directed IRA this is very simple. Contact your Self-Directed IRA custodian to learn how to facilitate this type of transaction. No matter what you choose, modernizing your alternative fixed income portfolio is essential, and it is not as hard as you think.
How do you keep your retirement portfolio working for you?
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or Info@VantageIRAs.com.