The idea is simple: diversification is one of the top strategies advocated by finance professionals because it balances out risk across a range of different investment types.
ASHVILLE, N.C. (PRWEB) December 21, 2017
With the stock market setting records for all-time highs as of late, there are some investors wondering if it might be a good idea to diversify their investments to ensure that market corrections don’t wipe out a significant portion of their retirement wealth. In a recent post at the American IRA blog, CEO Jim Hitt explained why holding real estate within an IRA might be a good idea for investors who want to preserve their wealth by diversifying out of one asset class.
The idea is simple: diversification is one of the top strategies advocated by finance professionals because it balances out risk across a range of different investment types. While many investors typically point to holding a variety of stocks and funds in order to diversify, there are those who consider diversifying the types of asset classes as well. For example, diversifying out of stocks with some holdings in bonds.
According to Jim Hitt, real estate is one of the most powerful ways to diversify out of stocks. Real estate prices fluctuating also provide some hedge against inflation—after all, if costs go up, a real estate manager can raise the price of rent. Holding real estate in an IRA, however, might be a foreign idea to investors who typically view real estate as something outside the bounds of traditional retirement investing.
Jim Hitt says that is not the case. “People need to know just how valuable and important it is to hold real estate in an IRA,” said Jim Hitt. “The advantages investors have thanks to the protections of an IRA are hard to measure. The same is true for holding real estate in an IRA.”
Jim Hitt, the CEO of a Self-Directed IRA administration firm, is also quick to point out that there are certain restrictions on holding real estate within a tax-protected account. For example, real estate investors cannot live in the real estate they hold in an IRA, but have to maintain them separately as an investment rather than personal property.
These considerations are important, says Jim Hitt, because they allow investors to make the most from their Real Estate IRA strategies.
American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 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, NC.