ASHEVILLE, NC / ACCESSWIRE / March 18, 2020 / Many investors rely on the stock market to produce the ample returns needed to sustain a retirement portfolio. But for some investors, this strategy can be fraught with risk. Those who rely on the stock market to perform well in the next ten years or even five years may find that the market doesn't produce its average historical returns over that period. According to a recent post by American IRA, a Self-Directed IRA administration firm, the answer to this problem may be found in a different retirement strategy.
One of the issues is timing. Since the stock market does produce high-quality returns over the long run, many retirement investors with a long timeline have no problem continuing to invest throughout the rocky periods. But not every investor is so fortunate to have started at the age of 18. For some investors-especially those taking advantage of catch-up contributions later in life-diversifying risk might make a lot of sense, particularly through an IRA, according to the post. The Self-Directed IRA allows investors to choose alternative asset classes for a retirement portfolio, which includes real estate, precious metals, and tax liens.
For example, a Self-Directed IRA investor who holds stable retirement property may have a property that continues to collect rent checks, even if the stock market is underperforming. This provides stability to a portfolio, as well as a hedge against inflation, as real estate tends to hold on to its value.
"The stock market is great for returns, but like any investment, it's not risk-free," said Jim Hitt, CEO of American IRA. "We don't provide specific investment tips for our clients as a Self-Directed IRA administration firm. But it's not hard to see that one of the advantages of using a Self-Directed IRA is that investors can build a well-diversified portfolio that spreads out risk."
There's no telling what the future holds in any one asset class. And the stock market has had a long run of gains since the 2008 financial crisis, which only opens investors up to worry about where it may be headed from here.
For more information on the latest post at American IRA, visit the American IRA blog at www.AmericanIRA.com. Interested parties may also contact the Self-Directed IRA administration firm by dialing 866-7500-IRA.
American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC and Atlanta, GA."
SOURCE: American IRA, LLC