Yesterday’s Wall Street Journal headline “Market Whiplash Rattles Investors”, after the major stock market indexes went into a downward spiral over the past week, bounced back, then dropped dramatically (again) yesterday. For many investors, this may be causing heartburn, sleepless nights, or just another round of stock market induced anxiety. If you are nearing retirement, and most of your savings are in the equities markets, this is an especially stressful time. It’s like Groundhog Day, all over again…
One of the many “Sacred Cows” of investing is: “You’re In It For The Long-Term”. This is just one of the MANY Sacred Cows I believe needs to be slain for most, if not all, investors. It may be debatable that this “wisdom” may hold true for those in their twenties, maybe even thirties, but I still say “Kill That Cow!” (A shout out to Garrett B. Gunderson! @GBGunderson)
The vast mainstream financial media, and most financial advisors, preach to us that the equities markets (stocks and mutual funds) are the only safe and sure way to invest for the long-term. This has been so beaten into our collective consciousness, few even think it’s possible there may be alternatives. Then there is the daily media hype about the ups and downs of the market, (“Markets Up” today!”, “Market Dives!” tomorrow) which is motivated purely by advertising dollars from brokerages and mutual fund companies.
One thing the mainstream financial news rarely mentions, and most financial advisors will NEVER mention, is that investors have many other investment choices available to them through Self-Directed IRA’s. Self-Directed IRA’s may be in the form of Traditional or Roth IRA’s, as well as Self 401(k)’s, and IRS rules allow for a wide range of investment options, most of which are not subject to broad economic conditions nor current equity market swings.
SDIRA investments can include real estate, private placements, commodities, tax liens, and many more investments that are considered non-correlated to the economy or stock markets. It’s easy and simple to set up a Self-Directed IRA, through a plethora of accredited administrators and custodians. The challenge then is to make your investment choices. One adage I DO firmly believe in is, “Only invest in what you know”.
Hedge Fund Alternatives is building a network for investors, their (open-minded) advisors, and Alternative Financial product and service providers, who like to sleep at night (not to mention avoid some heartburn), and learn more about the wide range of Financial Alternatives out there, including Self-Directed IRA investment options. Joining us will be good for your health! Join our email list, contact me on LinkedIn for a conversation, or just call me directly at 813-579-3585. Have a great day (and night!). Jim