When most people hear the word ‘diversification,’” said Jim Hitt, “they think about diversifying within the stock market. That means large-cap stocks, small-cap stocks, and so on. What true diversification means is embracing other asset classes in addition to stocks.
ASHVILLE, N.C. (PRWEB) February 05, 2018
With stocks continually setting records for closes throughout 2017, it appears that just about every investor with money in the market is doing well. Yet there are plenty of bear market investors—and plenty of ordinary Americans who wonder if there’s a way to avoid losing money on the next potential crash. Now, Jim Hitt of American IRA is turning to the American IRA blog to explain how Self-Directed IRAs can serve as an important vehicle for diversification out of the stock market.
“When most people hear the word ‘diversification,’” said Jim Hitt, “they think about diversifying within the stock market. That means large-cap stocks, small-cap stocks, and so on. But what true diversification means is embracing other asset classes in addition to stocks. That can include metals, private equity, real estate, and more—and an investor can have access to all of it through tax-protected, Self-Directed IRAs.”
Noting that the recent stock market gains are a tremendous way to build wealth, Jim Hitt believes that a truly complete portfolio will include stocks as well as other assets like real estate. That way, investors have fall-back options even when the stock market doesn’t perform. Writes Jim Hitt in the piece: “By going through a boutique custodian or third-party administrator that specializes in self-directed IRAs and other retirement accounts, it’s quite easy for investors to diversify their stock-heavy retirement portfolios into a vast array of different investments that may help diversify their holdings and potentially lower exposure to risk if and when equity markets turn sour. “
The end-result of using Self-Directed IRAs for diversification is to decrease independence on stocks performing well without losing out on the gains that occur during prosperous years. With increased real estate prices, for example, an investor can still generate tremendous growth even while investing through Self-Directed IRAs and building up a retirement nest egg.
“Diversification means not putting all your eggs in one basket,” said Jim Hitt. “But when the stock market goes down and all your eggs are in a well-diversified portfolio of stocks, it still means you only have access to one basket. Self-Directed IRAs are a powerful tool for building a truly diversified portfolio.”
For more information, visit http://www.AmericanIRA.com or call 866-7500-IRA. __title__ As Stocks Soar, Advisors Suggest Diversifying with Self-Directed IRAs
American IRA, LLC was established in 2004 by Jim Hitt 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 $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.”