Are you concerned about how the British exit from the European Union might affect your retirement plans? After all, USNews.com stated in a recent article that Bank of America Merrill Lynch reported more than $1 billion was pulled from U.K. equity funds in the week before the vote. In the days following the Brexit vote, the value of the pound dropped to levels not seen since 1985 and the stock market lost three trillion dollars. Global markets and those with interests in them were holding their collective breaths, bracing for the possibility of additional fall-out in the weeks and months to come. So, if you’re worried about Brexit, global markets and the success of your retirement plans, then this article is for you!
With such striking developments, one might want to take a look at their investment portfolio and consider other options. If your assets were heavily invested in stocks and certain forex leading up to Brexit, you may have been bracing yourself, as well. But, remember, putting the majority of your faith (and funds) in any one investment is never a good idea. Today more than ever, financial advisors are adamant that diversity in retirement plans is critical to counterbalance stressful events like Brexit, global markets and other losses.
Although Brexit has not caused quite the pandemonium as initially feared, now is a good time to consider alternatives that can help you maintain calm in the storm of global upsets. And, while no one is suggesting immediate, drastic changes in your retirement plan (because sometimes it’s important to forge a long-term approach) you can still achieve diversity in your retirement portfolio by using self-directed retirement plans.
Self-directed retirement plans offer a great avenue to diversification for individuals. These plans allow account owners to invest in alternative assets like real estate, gold, private equity, crowd-funding, hedge funds, and much more, to help offset the risks that forex and stock markets present in the current, unstable market. Self-direction offers the control many investors seek and the freedom for account holders to invest in assets they know best. When investments are truly diverse, things like Brexit, global markets and Wall Street shake-ups may not cause you to lose any sleep at all.
Alternative investments for self-directed retirement plans
Midland IRA does not give investing advice, but we can share news in that currently, investments in gold seems to be a preferred choice for many investors—and gold is an option for self-directed IRAs. Real estate has also long been a favored asset in self-directed accounts and includes investments in residential and commercial properties, rentals, fix-and-flips, improved and unimproved land, farm land, and timberland. Other assets popular among self-directed investors are crowdfunding options, hedge funds, private equity, as well as futures and forex trading.
Types of accounts that can be self-directed:
- Traditional IRAs, Roth IRAs
- SEP and SIMPLE IRAs,
- Individual or solo 401(k) plans
- Health savings accounts
- Education savings accounts
Once you open the account that best fits your circumstances, you have the freedom to explore the vast world of alternative assets, which does not end with the possibilities we listed above. You’ll find many other options to make a self-directed retirement plan fit your needs and your budget. The current market climate is a reminder that portfolios invested in property, gold, and other alternative assets has the advantage of not depending fully on the sway of the stock market, but relies instead on your own knowledge and control of your assets.
Brexit, global markets and the knee-jerk reactions initially caused widespread panic, but to date, the fallout has not been as bad as originally predicted. However, regardless of the highs and lows stocks and foreign exchange investments may present—diversifying your retirement portfolio with alternative investments can potentially equalize heavy losses—ensuring you don’t lose your entire retirement nest egg if the global markets tank.
When you offset your stake in the stock market by investing in alternatives with self-directed retirement plans, you can potentially control your exposure to exponential, unrecoverable risk. Armed with knowledge of prospective assets, you can acquire domestic and global products, companies, real estate, and other interests that you know and understand, at a level of comfort you choose. In a time when the market seems uncontrollable, you can feel confident in your personal investment choices in self-directed retirement plans.
If you want to discuss the potential alternative assets present in self-directed retirement plans, contact Midland IRA today. Our team is always happy to help individuals discover the power and freedom of self-direction and how non-traditional holdings can help you achieve financial freedom you desire when you retire.
Visit us online at www.MidlandIRA.com!