“Find a job. Buy a house. Invest in the stock market. Listen to fund managers and fund managers alone.”
Rinse and repeat.
Most of us have been so exposed to this “usual” advice that now we know of no other way of thinking. It’s a shame. And when only 2% of the $ 4.8 trillion in IRAs is invested in self-directed IRAs, it’s obvious most people listen, rinse, and rehearse – and don’t do much else to protect their own. retirement.
But what if the usual rules – which can work for many – don’t actually represent good advice for you and your specific situation? In that case, you could be in for a rude awakening: Self-directed IRAs may have been your best option from the start. Here are three reasons why this might be the case.
Reason # 1: Broader Investment Choices Work Better for Savvy Investors
Self-directed IRAs are ideal for people with investment experience, especially if their area of expertise is outside of traditional IRA boundaries.
For example, self-directed IRAs can allow you to invest in real estate, precious metals, private companies, intellectual property, etc. Frequent real estate investors may have a much better chance of saving money for retirement when their IRA is working in their area of expertise.
That’s not to say that traditional investments in index funds, mutual funds, and the stock market are worthless. Instead, a self-directed IRA “opens up” a wider range of possibilities than traditional channels. It gives you more options to rule your own future and the financial destiny of your family.
Reason 2: invest in what you know, rather than rely on experts
Many people make their money by investing wisely in a specific category – this is not always the type of investment that traditional IRAs allow. If you are familiar with real estate, a self-directed IRA can allow you to invest in real estate, generating a return on your investment without relying on the success of the stock market.
However, there is more to it than real estate. Investments in private companies are also popular in self-directed IRAs. Many investors who have worked primarily through these investments find that a self-directed IRA gives them the freedom to set aside retirement on their own terms.
What is the alternative that most people live with? Put their investments in the hands of expert-experts they rarely know. Fund managers and fund managers often give their clients a return on their investment, but not without paying a fee for their problems.
Reason n ° 3: real diversification of the portfolio
“Diversify, diversify, diversify.” It is the “location, location, location” of the investing world. Yet many of the same people who tell you to “diversify” don’t recognize that all of their money is in one place: the stock market.
What about true diversification? What about precious metals? Immovable? Intellectual property? True diversification separates your investments from the changing winds of the stock market and allows you to feel secure while casting a wider net than traditional IRA investors.
If at this point you blame yourself for not investing in a Self-Directed IRA, don’t worry. Fortunately, it is not too late to invest on your terms.