ASHEVILLE, NC / ACCESSWIRE / August 1, 2020 / Inflation having been steady as of late, not every investor is concerned with hedging against inflation. However, on a long enough time scale, inflation wears away at the value of most currencies, which in turn means that retirement investors need to be aware of it-and how to hedge against it. That is the latest from American IRA, a Self-Directed IRA administration firm, which recently took to its blog to explain how inflation hedging might work in such a retirement account.
The article highlighted that a Self-Directed IRA can include a variety of retirement assets. This goes beyond stocks and bonds and into assets like real estate, tax liens, precious metals, and private notes. Having the ability to invest in these alternative asset classes not only offers diversification, according to the article, but allows investors to put money in so-called inflation hedges.
For example, precious metals have long been touted by investors as a hedge against inflation. Priced in U.S. dollars, a precious metal can hold on to its value even in circumstances in which inflation is running rampant. As the U.S. dollar weakens and it takes more dollars to purchase an ounce of gold, that gold then holds on to its value.
The same is true in real estate, according to the article, where by and large, the same principles hold up. Real estate is not a risk-free investment-the article points out that the 2008 financial crisis saw a massive drawback in real estate prices-but the same is true for any asset class. With real estate, investment properties can continue to generate income even when the value of the currency is not what it once was.
The article serves to highlight why many investors turn to Self-Directed IRAs to broaden their assets, diversify their risk, and ultimately, build more security in retirement. By utilizing a wider range of assets, investors have the potential to increase their sense of financial security. Hedging against inflation is one tool investors can use to continue to excel even when the economic circumstances have others worrying about what will become of their money.
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