“If variety is the spice of life, diversification is the heart and soul of investing.” You hear it on the news, your friends and colleagues talk about it, and just about every class you take when pursuing a business major mentions diversification at least fifty times. Everyone knows how important it is to diversify, but that doesn’t mean it’s easy to do. You not only have to have enough money, but you also have to judge each investment in relation to the rest of your portfolio as well as on its own. If you want your portfolio to provide the best possible returns while also limiting the risk of major losses, you have to diversify.
Diversification is essential when it comes to retirement investments; there is nothing more important than lowering the risk of loss. Considering the ever-changing tax code, the possibility of further tax hikes, and markets that have no consistent trends, it’s now especially critical to spread your money around in various assets.
You know it’s never a good idea to have all your eggs in one basket and want to diversify your retirement portfolio, but can’t decide how. Luckily for you, there are not only many different investments you can choose from, but also different account types as well. You can choose to go with a traditional IRA, Roth IRA, 401k and even SIMPLE and SEP IRAs if you meet the qualifications. (For more information on the different types of retirement accounts, click here: https://www.midlandira.com/types-of-accounts/).
Once you have decided on the type or types of IRA that work for you, you can then decide on the actual assets you want to invest in. However, don’t think you are limited to investing only in stocks, bonds and mutual funds. There are a variety of other nontraditional assets that you can choose to invest in with a self-directed IRA that would help diversify your portfolio immensely. You can invest in real estate, gold, silver, LLCs, futures/forex, notes and mortgages, all within your tax-sheltered retirement account.
Investing in stocks and bonds is important, but it is also important to diversify your portfolio and invest in nontraditional investments as well. You can even invest internationally, whether through stocks and bonds or through real estate or LLCs. The possibilities really are endless. You know what you need to do to be successful in your retirement investments and it is up to you to get out there and make it happen!
If you have any questions or are interested in establishing a self-directed IRA account, please contact our office at 239-333-1032 and we would be happy to assist you!