(PRWEB) September 02, 2015
At the sound of the closing bell Monday, most of the market was trading in the red. According to CNN Money (http://money.cnn.com/2015/08/24/investing/stocks-market-crash-by-the-numbers/index.html), the Dow ended the day “down 588 points, the worst one-day loss since August 2011.” While this record drop isn’t the worst in history, it could be the sign of changes to come - a more tumultuous investment market.
When the traditional markets show signs of crashing, such as Monday’s drop, investors frantically search for alternative options to sink their capital into, options not so tied to the market, options found through vehicles like self-directed IRAs.
Many investors find that in times of market volatility private lending appears a solid investment choice. “If you understand the basics and perform the adequate due diligence for each deal, you can earn solid returns while minimizing your risk as a private lender,” says the educational site PrivateMoneyLendingGuide.com (http://www.privatemoneylendingguide.com/investors/articles/hard-money-lending-overview).
Another choice savvy investors make to counter market losses is to invest in more tangible assets such as real estate and precious metals. Physically owning real property and renting it out as part of your investment portfolio is much less correlated to the market than, say, a publicly traded Real Estate Investment Trust (REIT).
According to an article last month by RealtorMag (http://realtormag.realtor.org/daily-news/2015/07/27/booming-rental-market-sets-new-records), effective rent growths have been at least 5 percent for five consecutive months, which is the longest streak since an annual tracking of such data by Axiometrics began in April 2009.
But what about retirement accounts saturated with stock investments? Diversification through a self-directed IRA allows for alternative options to the traditional market. A self-directed retirement account means the investor chooses fully the investment he or she makes such as private lending, real estate, tax liens, and more. The IRS only prohibits investments into collectibles and life insurance.
“Most of our clients, once educated on their options, are thrilled to diversify away from the markets into investments they better understand and trust - like rental real estate,” says Jason DeBono, vice president of NuView IRA, a national leader in self-directed IRA administration.
Only time can correct the recent Black Monday stock market drop, but alternative investments such as private lending and rental real estate may help hedge against larger losses, especially in market-tied retirement accounts.
About NuView IRA
NuView IRA serves as a passive administrator that provides custody of alternative assets. NuView is not a fiduciary, and as such it does not provide investment advice nor does it sell investments. Founded in 2003, NuView IRA, along with its affiliates, holds nearly $1 billion in assets through thousands of accounts nationwide.