There is no doubt that the stock market has its share of ups and downs. For instance, the performance of the S&P 500 is down roughly -1.5% this month.
If you are one to read what the news is saying, the stock market doesn’t looked poised for big gains in the near future. Is there any merit to any of this news about a potential big correction coming soon? The only way I know how I know how to talk about what may happen is to look at what typically happens based on the past.
Typically, market corrections of -10% or more happen about once a year. Corrections of -15% or more happen almost every 2 years and -20% or more corrections happen roughly every 3 1/2 years. Want more detail, checkout investing.covestor.com
We haven’t seen a decent market correction of at least -10% since the later part of 2011. Based on what history, we are sure due for a big market correction. The real kicker is that we don’t always repeat history. Just because we are very much overdue for a -10% or more market correction doesn’t mean it will come anytime soon.
The truth is, nobody knows when it will come. Frankly to me it doesn’t so matter much when it comes but that my retirement portfolio is diversified well enough. If my retirement portfolio is diversified well enough I will be able to withstand the correction. Of course it will be a big hit but it won’t be as bad as if I hadn’t had any diversification in my portfolio.
One way you can truly diversify your retirement portfolio is with a self-directed IRA. A self-directed IRA gives you the ability to invest in things other than the stock market. What types of things? Real estate, gold or even private placements are all available in a self-directed IRA.
One of the most popular investments inside of a self-directed IRA is real estate which is commonly referred to as a real estate IRA. For those of you looking to invest in real estate with an IRA the below video shows an example of how someone would go about investing in real estate with a self-directed IRA.
If you are interested in investing with a real estate IRA to truly diversify your retirement account we can help. If you need any more information about real estate IRAs or self-directed IRAs then we can help. We are here to help you get the most out of your retirement investing. Take control today of your retirement investing.
Author: Nick Barker