How Real Estate Investments Can Diversify Your Self-Directed IRA Retirement Plan

“Diversification.” How many times have you heard some form of this word as a point of advice when it comes to your retirement?

“Diversify, diversify, diversify,” they’ll tell you, without actually telling you how to diversify your portfolio and ensure that your retirement plan is fully secure.

We at believe in telling people how to diversify just as much as telling them all about the value of diversification. And that means introducing people to new and interesting strategies to separate yourself from individual stocks and funds as a sole means of financial security.

One of our favorite strategies for diversification is to invest in real estate as part of a Self-Directed IRA. Through a Self-Directed IRA, it is possible to not only own property that is wholly separate from the fluctuations of the stock market. This offers true diversification, which means that you’re not dead-set on the success of any one given market for your individual retirement success.

Protecting Yourself from Market Fluctuations

One of the most immediate benefits of owning real estate for your retirement plan is that you will no longer be beholden to the stock market. After all, how many times do you see friends and family checking the TV or the newspaper to see how the market did that day, as though every single fluctuation in the market held their whole financial destiny? The sad truth is, for many people, it does.

You don’t want to be one of those people, or else you wouldn’t be reading this.

Real estate is one of the most obvious long-term investments to make in terms of avoiding these market fluctuations. Does it mean that real estate is, in itself, not a market? It certainly is; the real estate market is subject to fluctuations just like the stock market is. But when you separate from any one market when it comes to your investments, you give yourself the kind of hedge that the “diversify, diversify, diversify” people talk about but never actually follow through upon.

Diversification Within Real Estate

The beauty of investing in real estate as part of a Self-Directed IRA is that there are multiple options available to you, including commercial real estate, rental properties, raw land, and more. Investing in real estate is not just one single purchase, the way you might buy a mutual fund and forget about it. Instead, investing in real estate can include a wide variety of transactions and investments that offer a high degree of diversification within your Self-Directed IRA.

The more skilled you are at investing in real estate, the better you’ll do. A Self-Directed IRA, after all, gives the individual investor the decision making power they’ve been using in their own life. If you want to continue your investment success within a retirement account, only a Self-Directed IRA will suffice for your needs.

Making a Switch to Real Estate

Investing in real estate does not have to come at the expense of your other investments. You don’t have to abandon the stock market or mutual funds in order to acquire real estate. In fact, there are many ways you can go about investing in real estate. We here at like to keep people informed about investing in real estate through a Self-Directed IRA. For many people, it’s an option they’ve never even contemplated, let alone heard of.

To learn more about Self-Directed IRAs and how real estate can be an investment option for your retirement, be sure to contact us at 866-7500-IRA(472). We’ll be glad to discuss your options with you.

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