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Diversify Your Retirement Portfolio Through Self Directed IRA Investing

Diversify Your Portfolio

One of the biggest benefits that comes through a self directed IRA is that you can choose the types of investments that you want in your retirement account. In general, you can invest in just about anything as long as it passes the rules provided by the IRS. We have talked about these rules time and time again and if you need more information about self directed IRA rules you can check out our past post, Important Self Directed IRA Rules You Need To Know.

I wanted to talk briefly about probably the most popular investment inside a self directed IRA. What is that? It happens to be real estate. This typcially is in the form of a residential single rental property. You can get commercial rentals and multi-units as well. Whatever suits your situation and investment goals best.

So how is the housing outlook in the United States? It is actually quite mixed. The applications for U.S. home mortgages fell last week to the lowest since december 2000. This is more than likely due to the increase in interest rates that happened for the first time in four weeks.

The Mortgage Bankers Association has said that its sesonally adjusted index of mortgage application activity has dropped 7.2 percent. This includes refinancing and home purchase demand. They also noted that their index of refinancing applications has dropped 10.7 percent. This happens to be the lowest since November, 2008. Another key indicator for home sales, loan requests, is down 2.6 percent.

What is the current average mortgage rate for a 20 year mortgage? The answer, 4.27 percent. This is up from a week ago which was at 4.25

Currently the outlook it a bit grim. Yes the housing market has its ups and downs throughout the year and it is typical to see a down turn around this time of year but the the rising interest rates may have you discouraged about the housing market.

The thing with a self directed IRA that is great is that you aren't limited to the housing market. Currently, the gold market is around lows that we saw at the beginning of the year and according to many different gold investment experts, now may be a great time to buy as many investors are turning more bearish. More on the gold market from MarketWatch. Interested in gold in your IRA? Check out, Buy Gold Today With Your IRA.

A great retirement portfolio is one that is diversified. While now may not be the best time to buy real estate it may be a great time to buy gold or another investment. Take advantage of a self directed IRA as it isn't limited to certain types of investments like most IRAs and 401ks are. Doing this helps you limit your risks as well as increase your profits for your retirement portfolio.

If you would like more information about self directed IRAs, including the rules to self directed IRA and investing with a self directed IRA we can help. Contact us today.