How to Add a Self-Directed IRA to a Larger Retirement Plan

With how much we talk about Self-Directed IRAs around here, you’d think it was the only retirement option we believe in.

Not so.

In fact, we believe in a lot of retirement options, just like anyone else. We recognize that there are a lot of different investment styles and strategies. We recognize that the tried-and-true strategy of investing in the market tends to yield positive results for people. We believe in Self-Directed IRAs, of course, but that doesn’t mean we think they should be the only thing in your portfolio.

If you’re like us, then you recognize the value of Self-Directed IRAs…but you also recognize that you don’t necessarily want to make them your sole retirement plan. A good investor knows how to diversify, to create an overarching strategy that will encompass a range of different options and ensure the most possible financial security for your future.

There’s just one problem: you’re not always sure how to incorporate something as flexible into a Self-Directed IRA into your overall retirement strategy. Heck, you may not even have a defined “retirement strategy” yet. In that case, it’s time to review how a Self-Directed IRA might be included in your future retirement efforts.

Diversification: Not Just a Fancy Buzzword

If there’s any strategy that will yield long-term benefits and make you feel more secure about your investments, it’s diversification. Diversification isn’t just about listening to a buzzword that people like to throw around and blindly following the advice. Instead, diversification is a word frequently used within investments because it’s important, the same way “location, location, location” is the mantra of the real estate investor.

But how do you diversify your retirement portfolio? Well, there are a few strategies:

  • Most people believe in having a variety of stocks and funds in their retirement portfolio, and we do too. Not only will this help you to diversify your holdings within the stock market, but it’s a great way to feel more secure about what you’re doing overall.
  • One of the most important ways to truly diversify your entire portfolio, however, is to have a range of investment types­—not just a lot of different stocks and funds. You’ll want to be involved in more than one type of market, such as including real estate, to get a true sense of diversification.

As you can see, we value diversification as more than just an investor’s buzzword—it’s a tried and true strategy for real success.

Funding Your Retirement Accounts

One of the most important decisions you’ll make about your retirement accounts is how much money you put into them. This, of course, is entirely up to you. You have a lot of options, as well. You can choose to keep 80% of your retirement money in a traditional IRA and have 20% of your retirement investments set aside for other strategies.

It’s important to remember that there are indeed limits on the amount to which you can fund retirement accounts, so you’ll want to be aware of those. For that reason, we typically recommend against an approach of putting all of your proverbial eggs in one basket. It can be a good idea to get started with a new account like a Self-Directed IRA slowly.

If you want to learn more about Self-Directed IRAs and how investments like real estate, precious metals, and more can be a part of your retirement strategy, call us at 866-7500(472) to find out even more information. We’ll be glad to talk to you about Self-Directed IRAs and what they might mean for you.

Rate this post