American IRA Discusses Protection from Rising Interest Rates with a Self-Directed IRA

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How can investors protect themselves from rising interest rates? A recent post at American IRA argues that a Self-Directed IRA makes an ideal vehicle for investing to avoid the negative consequences of higher interest rates.

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American IRA CEO, Jim Hitt

When interest rates rise, it is typically because central banks are detecting inflationary pressures in the economy

Rising interest rates can mean many things for the economy. On one hand, it generally means that the stock market is picking up and there’s generally more enthusiasm that the economy can handle. On the other hand, higher interest rates can mean lower bond prices, higher mortgage costs, and a wide variety of other problems. How can an investor with a Self-Directed IRA protect themselves from these higher interest rates?

According to a recent post at American IRA’s blog, there may be a number of assets to avoid and assets to consider. Assets to avoid would include bonds—even though it’s not a reason to panic, high-yield and private placement bonds can be placed within a Self-Directed IRA and are not tied closely to interest rates. That gives the investor some degree of independence.

Real estate is another area in which rising interest rates can potentially affect an investor without adequate preparation. But as mortgage rates go up, there is increased demand for rental property as many would-be home buyers shy away from the higher rates. That creates a bigger market for investment property, which an investor can hold within a Self-Directed Real Estate IRA.

Another asset class for Self-Directed IRA holders to consider is that of precious metals. According to the post: “When interest rates rise, it is typically because central banks are detecting inflationary pressures in the economy. That is why they are increasing interest rates – inflation is making them nervous.”

Gold is a popular hedge against inflation in a variety of ways. But holding metal coins and bullion can add to the overall feeling of security provided by a Self-Directed IRA, especially when interest rates are rising, and it seems there are few avenues to escape them.

For more information on how investors can protect themselves from rising interest rates, or to learn more about the Self-Directed IRA, call American IRA at 866-7500-IRA or visit the blog at

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."

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