By J.P. Dahdah, Founder & CEO of Vantage
Are you frustrated with the fact that your IRA has not grown in the last decade?
This is a terrible feeling and as retirement looms, a stagnant stock market has proven to be a difficult place to earn solid returns. With Certificates of Deposits earning less than 1%, and bonds yielding less than 3%, what is an investor to do?
The answer lies in alternative assets, which can be invested through a Self-Directed IRA.
In this post we will discuss the benefits of investing in alternative assets with your IRA and how to start the process.
Why?
An alternative asset is an investment vehicle that has historically not been considered as part of a traditional retirement portfolio. These assets include precious metals (such as gold and silver), real estate, private lending, private companies, and hedge funds. These assets are generally not correlated to the movements of stocks and bonds and present an opportunity to generate robust returns when stocks and bonds are stagnant.
One of the main advantages of alternative assets is that they help you diversify your portfolio. An allocation to alternative assets can help sustain a portfolio during times of stock market volatility. By avoiding the mistake of putting all of your eggs in one basket, you can generate robust risk-adjusted returns over a long period of time.
How?
Once you have decided that it is time for you to take control of your retirement savings then simply begin exploring alternative asset possibilities. Most investors are not aware that there are alternatives to stocks and bonds within an IRA which is a misconception that is pervasive throughout the investment community. So, explore the merits of each type of alternative investment and conduct thorough due diligence prior to entering an alternative asset class.
In order to use your IRA to invest in alternative asset classes, you need an IRA Custodian or Administrator (actually, this is true regardless of asset class). But because self-directed accounts tend to be more nuanced, most custodians won’t help you, or worse yet, misinform you and tell you that diversifying into alternative investments is not permissible or available
On the other hand, this is all we do at Vantage Self-Directed Retirement Plans. We don’t tell you where to invest; rather, we facilitate your purchase of the assets that you choose with your IRA funds in a timely and accurate manner.
This way, YOU can be in control of your own outcomes.
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or Info@VantageIRAs.com.