If you’re more of an entrepreneurial spirit, however, you have no problem in moving off from the herd. When you see people aimlessly putting money away in stocks and mutual funds, you know that a Self-Directed IRA’s “unconventional” quality doesn’t necessarily mean it’s worse—in fact, in many cases, it’s downright superior.
How many times have you been told, as an investor, to “think outside the box?”
We’re willing to venture that many of those same advisors have also told you, in the same breath, that you’ll need to invest in retirement the same way other people invest in retirement.
If you’re not sold on the idea of true diversification yet, let’s take a look at some of the reasons to break out of the stock market “box” and venture out on your own when it comes to retirement planning:
Reason #1: Diversification Doesn’t Happen Through Stocks Alone
Quick, what do your favorite stocks and funds have in common?
The answer, of course, is that they all belong in the same essential market: the stock market. While it’s tempting to believe that owning a wide swath of stocks means that your investments are protected, this simply isn’t the case. Any stock market crash shows you that many companies are subject to the winds of the economic climate. In some cases, this is good news: when the market does well, you do well. But what about when the market doesn’t do so well?
To employ a sailing metaphor, you have to know how to sail against the wind, as well.
You can do that by expanding your portfolio to include stocks, yes, but also other investments like real estate and precious metals. A Self-Directed IRA means you can make these investments while saving up for retirement and planning for the long-term, as well.
Reason #2: Picking Stocks Isn’t Easy.
If you’re a real estate expert, you know how to make money in real estate. So why, all of the sudden, should you completely reverse what’s made you your money and invest in stocks instead? It doesn’t make sense to us, either. Part of the beauty of the Self-Directed IRA is that they allow you to invest in what you know how to invest in. If you’re a real estate expert with lots of investment experience, we say that you should be able to construct a retirement portfolio that includes real estate, as well.
After all, most people pay fund manager fees simply to have someone do their investing for them. This works out most of the time, but isn’t it better to keep those fees to yourself if you know how to handle your own investments? We think so.
Reason #3: Saving Money.
Speaking of those transaction and money-managing fees, we think that retirement savings should include as few expenses as possible. Every dollar you put away toward retirement is critical, after all—why give some of them away simply because you’re outsourcing labor to an “expert”? If you’re absolutely clueless about investing, after all, how can you tell that your money is really being well-spent?
Saving money is important just as investing money is—and sometimes, the two can go hand-in-hand. Self-Directed IRAs allow you to save money on the typical money manager fees that come with the “stock market box.” So we say, it’s time to think outside the box. Include stocks in your portfolio, yes, but expand your horizons so that you’re not dependent on a volatile market to fulfill your investment needs. Call us at 866-7500-IRA(472) to find out more about thinking “outside the box” when it comes to your IRA.