Friday, May 28, 2010

There's a way to hedge yourself from the stock market losses we've witnessed the last several years that have endangered individual's retirement nest egg. With the volatility of the market, many people have seen 50%, 60% and even more of their investments vanish, with no hope of recovery. That scenario makes it critical that you take control of your investment portfolio, and start earning returns that are not taxable until you remove the money for retirement. The wise pick is a self-directed IRA. Within that IRA, either a traditional IRA or a Roth IRA, you have a plethora of allowable non-traditional investment options from gold to real estate. Self-directed IRAs have been part of the tax and investment code since 1972, yet most people are unaware of them. There area number of reputable custodians that specialize in self-directed IRAs; among them Equity Trust Company and Entrust New Directions IRA. Fees for these custodians vary, so be sure to have a clear idea of the volume of transactions you anticipate making before choosing your custodian company. You may pick out non-traditional investments without taking un-needed risks, and still see above average gains . You can even join in with other people, invest in a fund and spread out both the risk and returns. You can set up an LLC and direct it to make investments for your individual retirement account.

If we remember anything from history , it is that there is a cycle to industries that smart investors see and take advantage of. Currently real estate markets are depressed in many areas of the country, making this a buyer's market, and making real estate a smart buy for a self directed IRA portfolio . Look for a real estate investment secured by a note or deed with a fixed rate of return within your IRA, or a real estate fund that reduces risk by allocating the investment over a number of properties with good LTV (loan-to-value) ratios.

Taking control of your IRA portfolio means greater opportunities to secure your financial future.