The stock market is exhausting. One day it is up, the next it is down. Then it is down for three or four days straight and then the next thing you know it is going up again. If you are like me and love to look at what the market is doing on a daily basis it can get very exhausting. There is a never ending amount of information out there that hypothesizes why the market is doing what it is doing. Some days I am reading how the sky is falling and we are in the midst of a crash. Other days I read about how we are about to see a huge upswing in the market. While the statistics can be skewed multiple ways to prove just about any future forecast of the market we can’t predict exactly what will happen. Because of this, I make sure that my retirement portfolio and investments are very sound long-term investments and I don’t worry day to day what the market is doing. I am only truly concerned with how my portfolio does over 5, 10, 20, and even 30 years out. If I lose some money today on an investment it isn’t a big deal as long as that investment, in the long run, will make a decent amount of return.
While there are many tactics to retirement investing, what really makes a good retirement portfolio? My idea of a great long-term portfolio is one that is diversified. I like the idea of investing in a wide range of investments. I am not talking about a wide range of investments strictly in the stock markets but I am talking about a wide range of investments in and outside of the stock markets. These types of investments can be stocks, bonds, some are tangible like real estate or gold.
So how would the average person looking to invest their retirement funds invest some of these non-traditional investments that are outside of the stock market? In order to invest in these non-traditional investments, you need a custodian that will allow for a self-directed IRA. A self-directed IRA gives you all the benefits of a regular IRA but allows you to invest in the other non-traditional investments like real estate or gold. If you want to find out more about self-directed IRAs feel check out, “What You Need To Know about Self-Directed IRAs“
There are plenty of reasons why investment professionals taught a diversified portfolio. One idea is that you can lower your investment risk without lowering your investment return. Of course there are certain ways to diversify but hopefully, you are beginning to see that you can do a whole lot more with an IRA and 401k than just buying stocks and bonds. You can diversify outside the market into real estate, gold and so much more.
If you need any more information about self-directed IRA investing contact us.
Author: Nick Barker