Finding Stability in a Time of Volatility

Finding Stability in a Time of Volatility

Recent economic volatility has caused investors to flee the markets in order minimize their losses. Everyday we hear weak reports of economic data that continue to erode consumer confidence. Many Americans facing retirement are now questioning how they should invest their money with the lingering memories of the substantial losses sustained in their portfolios. Ultimately, we would all like to take minimal risk and enjoy maximum return. So, how do we achieve this goal?

Self-directed IRA’s allow the investor to invest in what they know best. Additionally, self-directed IRA’s provide for efficient diversification. Efficient diversification is obtained in self-directed IRA’s through the wide range of investable assets that you cannot hold in a typical brokered account. Correlation is a single number that describes the degree of relationship between two variables such as different assets held in a portfolio. How do gold and real estate correlate to traditional securities? How do private stocks correlate to publicly traded stocks?

At the end of the day, we would all like to sleep well without the constant worries of losses in our portfolios. Opening a self-directed IRA will help to provide for efficient diversification through these non-traditional assets available for you to invest in. These assets include but are not limited to: real estate, mortgage notes, private stocks, LLC’s, gold, tax certificates, futures accounts, and many more. Self-directed IRA’s are the first thing that should come to mind when thinking about diversification and minimizing risk.