C Corporation UBTI (Unrelated Business Taxable Income) Blocker Technique May Help Reduce Self-Directed IRA Taxes

The Tax Cuts and Jobs Act – the sweeping series of Tax Cuts Congress passed at the tail end of December 2017 – included a bit of Christmas cheer for dedicated Self-Directed IRA investors.

Normally, as most readers are aware, there are no current year tax consequences for dividends, rental income or capital gains as long as the money remains within a Self-Directed IRA of any type. The income or gains continue to grow tax-deferred, or in the case of Self-Directed Roth IRA accounts, tax-free (as long as it stays in the account at least five years).

But that tax benefit does not apply to income or capital gains that are attributed to borrowed money. Instead, a special tax on what is called UBTI (Unrelated Business Taxable Income) applies.

You see, you only get the tax advantage on your own invested money – not on money you borrow from other people!

So, if you have 45 percent equity in a given property within a Self-Directed Real Estate IRA and you have a mortgage covering the other 55 percent, then 55 percent of your income from the property, and 55 percent of any capital gains from that property are federally taxable – at a punitive maximum rate of 37 percent!

The same principle applies to stocks and other securities in a Self-Directed IRA that are bought using a margin loan, and in certain cases, investing in an active business or trade via an LLC or other pass-through entity, such as a limited partnership. (S-corporations are pass-through entities, of course, but you cannot own them within a Self-Directed IRA, so they do not apply to this discussion).

Some Self-Directed IRA investors try to limit the impact of taxes on UDFI (Unrelated Debt Financed Income Tax) by creating a C corporation, and then using the C corporation to make the investments. It is a tax planning tool called a C corporation blocker.

Here is how it works: C corporations benefit a great deal from the Tax Cuts and Jobs Act, which reduces the corporate income tax rate from 35 percent to 21 percent. The corporation itself releases the dividends to the retirement account, rather than to the taxpayer directly, and they do not come from the property itself.

Obviously, there is a big difference between a 21 percent tax rate and a 37 percent rate, or even the old maximum income tax marginal rate of 35 percent.

Meanwhile, the real estate or other leveraged investment does not pay its income and gains directly to the Self-Directed IRA. Instead, they go to the C corporation.

When set up correctly, this is a big improvement compared to paying the marginal rate on your personal income tax returns, which is where your unrelated business income tax would wind up.

American IRA, LLC does not provide individualized tax advice. The information in this article is for general informational purposes only and should not be construed to be tax advice in your individual case. Readers should engage the services of a qualified tax professional, such as a CPA or enrolled agent before taking action.

Interested in learning more about Self-Directed IRAs?  Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation.  Or visit us online at www.AmericanIRA.com.

A Brief Glossary of Self-Directed IRA Commonly Used Terms

If you are new to Self-Directed IRA investing, to include Self-Directed Real Estate IRA and Self-Directed Gold IRA investing, you may hear a number of terms bandied about that you are not yet familiar with. Here is a brief glossary of terms commonly used in the Self-Directed IRA world.

AUM fees: A fee, charged as a percentage of assets a custodian or administrator holds on your behalf, that is generally deducted from your account on a monthly or annual basis. The term AUM stands for assets under management. Many investors can save money by switching from an account with an AUM fee to an administrator such as American IRA, LLC, which charges based on a flat rate menu of common services and procedures. People who buy and hold and do not trade frequently can save hundreds or thousands of dollars each year in fees by switching to a flat rate, menu-based fee structure.

Commingling. In the Self-Directed IRA context, commingling refers to combining assets from your personal account in the same account as an IRA investment or vice versa. Commingling may be construed to be a prohibited transaction and result in your Self-Directed IRA being disqualified. Keep your assets and your retirement assets strictly segregated.

Self-Directed Coverdell Education Savings Account: A special tax advantaged college savings tool, popular among tax sensitive parents. Also called “Education IRAs.” You can self-direct these assets as well.

Fair market value: The estimated value of an asset based on an “arms length” transaction from a disinterested and neutral but informed buyer. Self-Directed IRA owners must provide a year-end fair market value estimate for all assets in their self-directed accounts.

Self-Directed Gold IRA: A Self-Directed IRA that is primarily invested in gold.

Non-recourse loan: A loan secured entirely by the property lent on. Under the terms of a non-recourse loan, if the borrower defaults, the lender must have no recourse to sue the Self-Directed IRA owner or attach any assets besides the property in order to satisfy the debt. All mortgages on property held within a Self-Directed IRA or Self-Directed Real Estate IRA must be non-recourse loans. Self-Directed IRA owners and disqualified persons cannot provide a personal guarantee on the loan, or the transaction may be considered a prohibited investment.

Prohibited investment: An investment into an asset not allowed by law. Self-Directed IRAs cannot be invested in life insurance, art, collectibles, alcoholic beverages, gems and jewelry, and gold coins and bullion of insufficient or inconsistent purity.

Prohibited transaction: A transaction prohibited to Self-Directed IRAs or other retirement accounts by law. For example, a Self-Directed IRA cannot buy or borrow from, nor lend or sell to his or her children or grandchildren, his or her spouse’s children or grandchildren, nor to his parents or grandparents or those of his spouse. Self-Directed IRAs also cannot transact with any entities controlled by any of these individuals, nor with any advisors acting in a fiduciary capacity with respect to the Self-Directed IRA investment, nor any entities he or she controls.

Self-Directed Silver IRA: A Self-Directed IRA primarily invested in silver.

Small business retirement plan: A pension plan designed for entrepreneurs, self-employed individuals and businesses with a small number of employees. Examples include Self-Directed SIMPLE IRA plans, Self-Directed SEP IRAs, and Self-Directed Solo 401(K)s

Self-Directed Solo 401(K): A streamlined type of 401(K) plan designed specifically for businesses with just one owner, or an owner and his or her spouse, and no other full-time employees.

Self-Directed Spousal IRA: A Self-Directed IRA established in the name of a spouse who does not have adequate earned income in his or her own name.

Unrelated business income tax: In the Self-Directed IRA context, income attributable to leverage, rather than to investment from the Self-Directed IRA account holder himself, or herself.  Closely related to unrelated debt-financed income tax.

Interested in learning more about Self-Directed IRAs?  Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation.  Or visit us online at www.AmericanIRA.com.

Incorporating Self-Directed IRAs and Self-Directed 401(K)s into Your Retirement Strategy

Throw around phrases like IRAs and 401(K)s and people will start to feel their eyes glaze over. Add on a hyphenated word — Self-Directed IRAs and Self-Directed 401(K)s—and you will get the same reaction. Yet that simple compound word can mean a major difference for those who are planning on retiring in abundance and security. It only makes sense for those who are currently weighing their retirement options to know what they are getting into.

What are Self-Directed IRAs and Self-Directed 401(K)s and how do they differ from regular IRAs and 401(k) plans? Let’s have a look at the key differences, the key limitations, and whether or not these plans might be right for your particular retirement strategy.

Self-Directed IRAs and Self-Directed 401(K)s: A Brief Overview

The concept of Self-Direction is relatively simple: rather than outsourcing the work of investing and management to a financial advisor, you make your own choices. A Self-Directed IRA, for example, is nothing more than an IRA that you control. It will have the same overall contribution limits and characteristics that any other IRA otherwise would. The same is true of the Self-Directed 401(K).

But that control does make for a great deal of difference in how the retirement plan will be administrated. For many investors, their first involvement with a 401(k) is through an employee-sponsored plan. They then have limited options according to this plan and make do with the options available to them. In the concept of self-direction, it is possible to utilize a large variety of investment options even through a 401(k) plan—provided that the correct administrative framework has been established. This is true for both Self-Directed IRAs and Self-Directed 401(K)s.

Gaining More Control Over Your Retirement Investments

Why bother with Self-Direction? It allows you more control to make the investments you deem appropriate. For example, while your options may be limited in employee-sponsored plans, Self-Directed IRAs and Self-Directed 401(K)s allow you to invest in a wide degree of asset classes, including:

  • Real estate
  • Precious metals
  • Private lending/notes
  • Private companies
  • Tax liens and deeds
  • Joint ventures and partnerships

Although there are still some limitations—you will be expected not to invest in fine art as part of a Self-Directed IRA, for example—these options afford even the average investor with plenty of leeway for diversifying the assets in their portfolio beyond the usual medley of stocks and bonds.

How to Utilize Self-Directed IRAs and Self-Directed 401(K)s

If you are looking at an employee-sponsored plan and wonder how you can start to take control over your finances—or if you do not have a retirement plan in place at all—the idea of Self-Directed IRAs and Self-Directed 401(K)s can be quite intimidating. You are not sure which account type or investment type is right for you, and you do not know the next steps. We at American IRA, however, have created a few different pages that should guide you through what to expect:

  • Our overview of Self-Directed Accounts will steer you through the various account types – Self Directed Solo 401(k), Self-Directed SEP IRA, etc.—to get a better sense of which one might match your particular situation. It is important to do plenty of research and read up on the individual account types to get a sense of which is best for you.
  • Pay particular attention to the Self-Directed Solo 401(K) site to see if you are eligible for this type of account. A Self-Directed Solo 401(K) comes with high contribution limits, which is highly advantageous for anyone with excess money to stow away for retirement.
  • You might start by reading up on the Self-Directed IRA, or Self-Directed Traditional IRA. Even if you do not plan on opening up this particular type of account, you will find that this is a great way to get started reading up on your various retirement accounts and how they can fit into your retirement strategy.

Want more information on how a Self-Directed IRA might be administrated? Call us at American IRA at 866-7500-IRA or visit www.AmericanIRA.com.  If you would like to schedule a training session for your staff please call 828-257-4949.

Five Things Realtors Should Know About the Self-Directed IRA

A Self-Directed IRA is a powerful tool for aspiring retirees to build wealth by focusing on the assets they want to focus on. One such asset class: real estate. That is why it is so vital for realtors who want to know their market to understand that some real estate investors might be looking for the next great real estate opportunity as part of their retirement strategy.

With that in mind, we have taken some key facts about the Self-Directed IRA that every realtor should know. Here are what realtors should know about this unique retirement arrangement:

  1. The Self-Directed IRA Allows for Real Estate Investing

This may be one of the most basic and fundamental ways to understand the Self-Directed IRA: the IRS does not have many restrictions when it comes to the investment types held in an IRA. A Self-Directed IRA holder can choose from assets as diverse as real estate and precious metals. It is not difficult to see how this might be relevant for a realtor.

Do not discount a potential client because they are using a Self-Directed IRA as a way to build retirement wealth. These investors may actually prove to be more savvy and knowledgeable about real estate than you might have imagined; they are just going about their real estate investing in a way that is not always “traditional.”

  1. Self-Directed IRAs Allow for Non-Recourse Financing

When you think about an ideal client—someone who could potentially invest in real estate now—you might not think of someone who is looking to make a retirement investment. That is because typically, many people do not see loans and leverage as a way to build a retirement nest egg. But it is possible using a Self-Directed IRA—real estate investors can use non-recourse financing to ensure that they utilize leverage to make a real estate investment. That means that even if a client does not necessarily have the current funds to make the investment you might be pointing out to them, they might still be capable of making it using a Self-Directed IRA.

  1. Real Estate Grows Inside a Retirement Account Tax-Free

If you need a way to push the incentives of investing in real estate, a retirement account is the way to go. Rental income and sales proceeds will go into the Self-Directed IRA, not to the individual, which means they can then grow tax-free. This gives you, as a realtor, the ability to save your clients a lot of money simply by broaching the subject of the Self-Directed IRA as an investment option. And those who look at real estate as a pure investment will be excited to know that they can guarantee themselves higher returns simply by going about it the right way.

  1. There are Restrictions, but Investment Real Estate is the Key

No, a client cannot invest in their personal home through a Self-Directed IRA. That means they cannot use real estate they hold within this retirement account for personal needs. However, just about any other type of investment real estate is perfectly acceptable—including single-family homes, commercial property, and even apartment buildings.

  1. Diversification is the Key to Success

Anyone looking to expand their retirement portfolio and build their wealth on solid foundations of diversification are looking for a way out of 100% stocks and bonds. A Self-Directed IRA presents exactly that opportunity. Investing in real estate—or even other options like precious metals—affords individuals the right to build a wide net in their quest for retirement success.

Interested in learning more about how you can help your clients with your knowledge of Self-Directed IRAs? Give us a call at 866-7500-IRA or visit www.AmericanIRA.com

Be a Better Self-Directed IRA Investor: Be Aware of Cognitive Biases and Emotional Traps

Are you as ‘squared away’ for retirement as you hope you are? Maybe not.  The Center for Retirement Security at Boston College has launched a new tool to help taxpayers determine whether they are on track for retirement – and to help Americans identify and address common psychological and behavioral traps that can short-circuit your retirement decision-making.  We recommend it for all Self-Directed IRA investors and conventional investors alike.

Curious Behaviors That Can Ruin Your Retirement is an interactive program on behavioral impediments to retirement planning. A host leads users through a series of exercises designed to create an “Aha!” moment as they relate to the behaviors. The host then explains how the behavior can hinder retirement planning and, coaches users through strategies that can help minimize the effects of these subconscious biases and help them develop a more rational decision-making process.

Users can then go to a “Learn More” page, which presents more information in multiple media formats. It is a terrific tool for all ages.

The tool is a fun and lighthearted look at a serious issue: Millions of Americans fall victim to irrational thought processes, emotionalism, wishful thinking, denial and a series of other misconceptions and cognitive weaknesses that cost real money.

A recent research report from Deloitte lists the following behavioral biases that can impact your ability to manage your Self-Directed IRAs:

  • Inertia: When you are used to doing things a certain way, the tendency is to take no action.
  • Present bias: The tendency to prioritize current wants over long-term needs
  • Passive decision making: The tendency to follow the path of least resistance, or to choose from the most obvious, readily-apparent options rather than investigate possible options more deeply.
  • Anchoring: The tendency to base decisions on a set value that may be irrelevant.
  • Partitioning: A tendency to make commitments piecemeal when you would be better served by bolder action. For example, the tendency to “dollar cost average” into a rising market when you may be better off investing a larger lump sum.
  • Peer pressure: Irrationally allowing other equally irrational actors to influence your decision-making.
  • Overconfidence: Excessive belief in your own abilities.
  • Effort aversion: The tendency to embrace the easy wrong option over the difficult right one.
  • Loss aversion: Allowing the fear of possible loss to prevent you from taking reasonable risks in the prospect of greater gains.
  • Endowment effect: The tendency to avoid giving up what one already has, even when a clearly better option is available.

As a group, Self-Directed IRA investors tend to be a rational bunch. Many of our clients are veteran investors and business people who have achieved significant success over the years. But all of us are human, and none of us are immune to any of these cognitive biases.

But forewarned is forearmed: Being aware of these biases and emotional traps can help you prevent falling victim to them. And that is going to make you a better Self-Directed IRA investor.

For more information about Self-Directed IRA investing, or to get started on your Self-Directed IRA investing journey, call us today at 866-7500-IRA (472). Or visit us at www.AmericanIRA.com.

We look forward to serving you.

Real Estate IRAs Provide Real Diversification Against Struggling Stock Market

It has been a rough few months for most investors. But, owners of Real Estate IRAs have been doing pretty well.

The last week of March the Dow Jones Industrial Average plummeted 1400 points to reach a low for the year. The Dow fell 5.7 points and the S&P 500 fell 5.9 percent – the worst week for stocks in two years. The Nasdaq fell 6.5 percent that week. The S&P 500 is now 0.68 percent underwater for the year to date. The Dow is now 11.2 percent off its high.

Sure, that is not the end of the world – it is also up by more than 12 percent over the previous 12 months. Stocks have been exceptionally volatile lately. The U.S. stock market is also trading at over 27 times earnings which have been looking favorable. There is ample good news already figured into the stock market. One big earnings miss, or a disappointing jobs report could bring the whole thing down by a significant amount.

“The market has been priced for perfection … and that leaves the market vulnerable to surprises. In this case, it’s trade,” according to Baird analyst Bruce Bittles.

Stock Vulnerability Is Global

U.S. markets were not the only losers. Stocks lost money around the world – this time on fears of a potential trade war between the U.S. and China, sparked by talk of tariffs in Washington. China helped send shares plummeting by slapping retaliatory tariffs on more than 148 U.S. products, including steel pipes, pork, almonds and California wine.

In the above markets, diversifying into international stocks did not shelter investors from the pain.

Real Estate IRAs Outperforming

The investors who chose to diversify into Real Estate IRAs experienced a better outcome:  U.S. house prices jumped 7.3 percent in January compared to the same times last year, according to data from the Federal Housing Finance Agency. Prices were up more than 10 percent in the Mountain region. Prices had jumped 0.8 percent from December to January – the biggest monthly increase since February of 2017.

Real estate has been delivering a solid annual return – on an unleveraged basis – while still showing much less downside volatility. Over the past 12 months, all regions in the U.S. were up, with the weakest regional market – the West South-Central region (Oklahoma, Arkansas, Texas and Louisiana) increasing by 5.1 percent. Home prices in Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona and New Mexico saw double-digit increases.

The Potential Benefits of Leverage in Real Estate IRAs

Real estate investors are doing much better than even those numbers suggest. First, real estate is commonly leveraged. So, an investor in Colorado with a typical real estate portfolio gain of 10 percent for the gain but holding just 50 percent equity is getting close to 20 percent, minus costs of carry.

Furthermore, he or she is collecting rental income the whole time. In this case, the landlord can collect two rents for the price of one, thanks to leverage.

Leverage increases risks, in a down market, it can make things very dicey for the borrower. At the present, however, most real estate investors have been doing much better than stock market investors, with less stress (assuming good tenants)!

The last few months have been excellent for Real Estate IRA investors. The strategy has been working as intended: Real Estate IRAs provide meaningful diversification to portfolios otherwise heavy with stocks. They are delivering solid price appreciation. They are generating current rental income, so investors get paid to wait. And the income they generate has been steadily increasing. Rents have been rising in nearly 9 out of 10 cities, according to data from RentCafe, helping protect income-oriented investors against inflation.

Own Real Estate IRAs

We suggest nearly every American with significant retirement savings or investable assets consider including real estate, including Real Estate IRAs, in their portfolio.

Holding real estate in a Real Estate IRA, Solo 401(K) or SEP IRA can help shelter increasing income from taxes and generate free cash flow on a tax advantaged basis.

Investing in a Real Estate IRA is very easy: Call American IRA, LLC today at 866-7500-IRA (472). You may also download our exclusive guide to Real Estate IRA investing here.

We look forward to hearing from you.

Baby Boomer, Gen X Retirement Saving Inadequate, Study Says

When it comes to retirement saving, the Baby Boomer generation is in trouble.

Despite many of them now entering retirement, the majority of those born between 1946 and 1964 report having less than $250,000 in retirement assets. Only about 1 in 3 Boomers has that much saved up – leading to a retirement income shortfall of between $3,864 and $12,072, according to research from the Insured Retirement Institute.

And things are not looking too great for Gen Xers, either. According to the Insured Retirement Institute’s (IRI) fourth biennial report on Generation X, about 4 in 10 members of this generational cohort do not have money saved for their retirement. Despite an overall improvement in the economy, this represents a deterioration of about 5 percentage points from two years ago.

Of those with retirement savings, about 6 in 10 have saved less than $250,000. On the other hand, the percentage of those who have saved at least $250,000 or more has nearly doubled over the same time frame, rising from 12 percent in early 2016 to 23 percent in 2018.

According to the IRI, about 60 percent of Generation X respondents report being generally confident they will have enough money saved for retirement. Their top three economic concerns are changes in Social Security (66 percent), higher than expected health care expenses (64 percent) in retirement and running out of money (59 percent).

Ultimately, people across the generations need to get serious about putting money away.

Use “Catch-Up Contribution Limits”

The Baby Boomers and the oldest of the Generation Xers can both take advantage of “catch-up contribution” limits, available to those ages 50 and older. Congress anticipated the need for older Americans to sock more money away as they enter their peak earning years and their children have reached adulthood.

For Self-Directed IRAs, individuals age 50 and older can put an additional $1,000 away each year in combined Roth IRA and Traditional IRA contributions – over and above the normal $6,500 annual limit. Some limitations apply for those at higher income levels.

Older Self-Directed 401(k) beneficiaries can also increase salary deferral contributions. As of 2018, those ages 50 and older can contribute an additional $6,000 per year to employer-sponsored Self-Directed 401(k) plans, on top of the generally applicable $18,500 contributions, for a total potential employee contribution of $24,500 per year.

Similar provisions also apply to 403(b) plans, the federal Thrift Savings Plan and many Section 457 deferred compensation plans for public employees. They also apply to Self-Directed 401(k)s and small business Self-Directed 401(k)s.

Those turning 50 and older this year should consider taking full advantage of these more generous tax-advantaged compensation limits.

Working longer

Many Americans will have little choice but to stay in the work force longer and put off retirement. This means more years of earning an income, and more years of potential retirement contributions and compounding within retirement accounts. It also means higher monthly Social Security benefits, if you can put off collecting Social Security until you reach full retirement age.

Staying in the work force also means you do not have to stretch your retirement income over as many years. With today’s advances in health care and nutrition, it has grown commonplace for Americans to live into their late 80s and 90s. Taking income out of your portfolio for 10 years rather than 20 years can make a big difference in the sustainability of your retirement income.

For more information on getting started with Self-Directed IRA investing, call American IRA today at 866-7500-IRA (472).

Survey: Most Americans Have No “Bear Market” Retirement Plan In Place

Federal banking regulators routinely force banks to “stress test” their portfolios, modelling what would happen under various troublesome economic scenarios. They do this so that banks have a chance to shore up wobbly loan portfolios and liabilities before the crisis arises.

Have you done the same with your retirement plan?

A new survey shows that nearly half of Americans have not.

The latest Country Financial Security Index shows that almost half of all Americans could not withstand a sudden 6,000 point hit to the Dow Jones Industrial average, which would slash much of their retirement portfolio’s power to generate income in retirement.

A decline of that magnitude would constitute roughly a 25 percent drop from current levels (depending, of course, on when you read this!)

It has not even been a decade since we have seen a decline at that level – it last occurred in 2009, during the worst of the Great Recession and the mortgage crisis, which spilled over into stocks and real estate – though it was a boon for gold investors and for those willing to pick up real estate and other assets at bargain basement prices.

“Our motivation in asking the question was to get investors’ attention,” says Doyle Williams, executive Vice President at Country Financial, the Bloomington, Ill. insurance and financial services company. “We want them to think about a drop of this size ahead of time, to get them to think about what they would do in the moment,” he told editors of USAToday, ahead of the survey’s publication.

Other findings:

Only about half of Americans – 52 percent – told surveyors that they were “financially prepared” for a 25 percent decline in the stock market as of February 2018. However, only 28 percent reported having any kind of financial safety plan in place. 44 percent reported having no such plan.

What would such a plan look like?

Here are some suggestions:

1.)  Maintain a significant emergency fund. Ideally, you should have 3 to 6 months of financial reserves to see you through any manner of emergencies. For many people, this may not be an easy practice: A 2017 study, also by Country Financial, found that about half of Americans – 49 percent – do not have enough savings on hand to cover three months of expenses if they lost their jobs or other primary sources of income.

If you fall into the above category, chances are your emergency fund can use some shoring up. Checking and savings accounts, money market funds and cash value in permanent life insurance policies are all good homes for your emergency fund savings.

2.)  Reduce debt. Your emergency fund will probably last a lot longer if you do not have any payments.

3.)  Fully fund your IRA or Roth IRA (including Self-Directed IRAs). Your IRA savings can pull double duty: Contributions can grow tax-deferred or – in the case of Roth IRAs – tax free as long as the money remains in the account, into retirement. Yes, there is a 10 percent penalty on early distributions under normal circumstances. But IRAs also have a number of hardship provisions that waive this penalty if the withdrawal is made under qualifying circumstances.

These circumstances include:

  • Disability
  • Death
  • Avoidance of foreclosure or eviction
  • Paying for qualifying medical expenses exceeding 10 percent of your adjusted gross income
  • Paying for health insurance premiums.

Do not rely on 401(k) assets for emergency savings. Many companies do not allow for in-service withdrawals, and emergency hardship withdrawal limits are generally much more stringent. However, if your plan allows for loans against your 401(k) balances, this could help in a pinch. Remember you must pay the loan back to the plan.

4.)  Diversify your portfolio. If you are overexposed to stocks – so much that the prospect of a 25 percent or even a 50 percent decline scares you, it is time to diversify. Move money into other asset classes, such as bonds, real estate, precious metals, and even further afield. A Self-Directed IRA can be an excellent vehicle for diversifying your retirement portfolio while still retaining the possibility for significant long-term gains.

 For more information on using a Self-Directed IRA to increase diversification and potentially reduce your overall risk exposure in the event of a big stock market decline, call American IRA, LLC today at 866-7500-IRA (472).