fbpx

3 Ways a Self-Directed IRA Can Help You Diversify Your Portfolio

Article categories:

Before we share three reasons why investors seeking a diversified portfolio should consider a self-directed IRA, let’s quickly define the term “self-directed.”

A self-directed IRA (or other retirement account) is technically no different than an IRA or retirement account you may already have or be familiar with.

But with one crucial difference.

The company that holds your IRA determines whether or not they will support alternative asset investments. Directed custodians such as Equity Trust specialize in the custody of alternative assets and enable you to invest in a wide array of assets beyond stocks and bonds.

Get your Self-Directed IRA right here.

Now that we have the basics covered, here are three ways a self-directed IRA could potentially help you diversify your portfolio.

1. Hedge against the market with alternative assets.

Many investors are initially drawn to investing in alternative assets with a self-directed IRA because they aren’t happy with the returns in their portfolio, are looking to invest beyond the market, or are worried about market volatility and want to add more diversification to their portfolio.

Alternative assets typically don’t correlate to the stock market and can help add diversification to your portfolio. As a recent InvestmentNews article shared:

“Across wealth management, the trend is definitely toward diversification away from the traditional, long-only stock and bond exposure. ‘We utilize custom market-linked notes, private real estate investments, farmland and other nontraditional investments in order to smooth out the overall returns of our portfolios,’ (Wealth Manager Thomas) Balcom said. ‘Failure to incorporate alternative investments would be a great disservice to your clients.’”

2. Customize and diversify your portfolio with more investment freedom and flexibility.

With a self-directed IRA, you have the opportunity to invest in alternative assets such as real estate, farmland, promissory notes, private equity, precious metals, cryptocurrency, and more. Additionally, you can invest in traditional assets such as stocks and mutual funds – all through a single custodian.

It’s either one or the other at many companies – only alternative or only traditional assets. But with a self-directed account at Equity Trust, you hand-select the investments in your portfolio with the freedom to diversify in whatever way makes sense for you.

“To my surprise, I discovered there were many non-traditional assets such as real estate, tax liens, and promissory notes that our retirement dollars could invest in using a self-directed IRA.” – Susan, New York

“When I first heard about Equity Trust Company a couple of decades ago, I didn’t believe any of this was possible. I wondered why I’d never heard about it.” – Joel, New York

3. Take control and invest in what you know best.

If you have experience or an interest in real estate, invest in real estate. If you’re passionate about cryptocurrency or renewable energy, you can do that too.

If you know of an exciting new start-up company, have specialized knowledge from your background or experience, or find a private equity fund you like, it’s possible to invest with your retirement savings. Regardless of the opportunities you find, chances are, you can do it with a self-directed IRA at Equity Trust.

“I think people are better off investing in what they know, but even then, due diligence is critical.” – Don, Tennessee

“When I tell people that I invest in real estate through my IRA, they usually look perplexed,” Kay says. “I can tell that most do not know what I am talking about. However, my successes spike their interest.”

“I have not had to deal with the emotional ups and downs that I would experience when my retirement savings were invested in mutual funds and stocks.” – Kay, California

As you’ll learn in your research, the IRS only provides a list of assets you can’t invest in. Beyond that, there is a myriad of options available to self-directed IRA investors.

This information was provided by Equity Trust Company. Equity Trust Company is a directed custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.

Coffee Farmland Opportunity

Farming, Processing, Marketing & Sales All Done For You.
See This Opportunity
Darren Doyle
Darren Doyle
Co-Founder & President of AgroNosotros
darrend@agronosotros.com
Toll Free USA/Canada 877-208-7988
Direct +520-226-9119
Panama Cellular +507-6067-1091
menuchevron-down-circle