American IRA Discusses Can a Self-Directed IRA Offer Diversification?
ASHEVILLE, NC / ACCESSWIRE / January 1, 2020 / Many investors are looking for diversification, especially given the context of 2020 as a financial year. Not only did the COVID-19 pandemic hit investors in a strange way, but uncertainty in the stock market forced many investors to rethink their strategies for diversification. According to a recent post on the American IRA blog, one option for investors is to diversify within a retirement account. American IRA defines diversification as including more than one type of asset class.
In that context, a Self-Directed IRA can be a powerful way to diversify beyond the traditional model of investing in only stocks and bonds. With a Self-Directed IRA, investors will have access to new options, including putting money into real estate, precious metals, tax liens, private companies, and private loans. These can be powerful ways for investors to hedge beyond the stock market and invest in nontraditional assets that nonetheless generate long-term returns.
As with any investment, investing in alternative asset classes can mean risk. But there are some people who look to Self-Directed IRAs to mitigate their overall risk in the stock market. For many investors, the problem of index investing means that money continues to prop up a smaller number of large stocks. This can make the stock market more volatile than it is historically, as seen in the fluctuations from 2020.
“With this article, we wanted to let people know that diversification isn’t just possible, it’s easy,” said Jim Hitt, CEO of American IRA. “People who look to diversification across multiple asset classes can feel a little bit more secure about themselves because they’ve cast a wide net. And a Self-Directed IRA is a good way to ensure that those investments have the protections of a retirement account.”
In the article, American IRA explained what this diversification could include. However, with a Self-Directed IRA, investors make their own decisions, as Self-Directed IRA administration firms only serve as “custodians” on the account and not as financial advisors. This puts more responsibility-and power-into investors’ hands.
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
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