Is anyone else really curious to see where the market is going? Currently, the Dow Jones has lost 6.83%, the S&P 500 has lost 5.04% and the NASDAQ has lost 3.47 since the beginning of the year. Is the market going to continue this downswing for much longer? The truth is, we don’t know. We can speculate and we can have some great educated guesses, but it is very hard to time the markets. What is a good investment strategy knowing that the markets can be volatile and that they can be very hard to time? Most investment professionals would suggest a diversified portfolio to combat the issues of market fluctuation.
What Does Diversification Mean?
In simple terms, it means to make sure you aren’t putting all your money into one particular investment. Make sure you have multiple diverse investments. If you have everything in stocks you are not diversified. If you have everything in bonds you are not diversified. Another great option when diversifying is to diversify your risk. If everything is at very high risk then you have nothing to save you when those high-risk investments go south. The opposite is also true. If you have everything in low-risk investments then you can lose out on great earnings when those high-risk investments are doing well.
Ways to Diversify
There are plenty of ways to diversify. For most people, they are typically already invested in stocks, bonds and any other typical investments that all the big billion dollar investments firms offer. Do you want something different that you can’t get everywhere but is a great option? If so, why not try a self-directed IRA? In particular, why not try a real estate IRA that is done through a self-directed IRA?
What is a Self Directed IRA?
We have countless articles that explain what a self-directed IRA is. Check a few of them out here: Self Directed IRA Rules, What You Need To Know about a Self Directed IRA. Feel free to call us with any other questions pertaining to self-directed IRAs
What is a Real Estate IRA?
A real estate IRA is the same thing as a self-directed IRA but you are specifically investing in real estate inside of your self-directed IRA.
What Types of Real Estate Can you Have inside a Self Directed IRA?
You can invest in just about any type of real estate. Single family residential units, multi-family residential units, commercial units and mortgage notes are just some of the more popular types of real estate investments inside of an IRA. While mortgage notes is a popular option it shouldn’t be a big shock that buying actual property like a single family, multi-family and commercial units are by far the most popular option.
One of the greatest reasons to invest in real estate through an IRA is that you can utilize the tax advantages that retirement accounts offer. If this is something you are highly interested in, get more detailed information at Maximizing Your Real Estate IRA. Contact us today for help setting up a real estate IRA.
Author: Nick Barker