As the stock market takes another monumental leap and continues to frustrate investors, the non-traditional investment market is gaining more market share. Investing IRA and 401(k) funds off the stock market and into real estate, tax liens and financing a business was almost unheard of even five years ago.
Today, however, investors are taking advantage of these opportunities to generate higher and safer returns than the stock market can offer. Since 2000, investor participation in these types of investments has more than doubled and is projected to represent 20 percent of retirement funds by 2015. The lack of good, reliable information and the inability to Locating providers that offer these types of investment vehicles are often the most important factors. prominent reasons why more people are not diversifying their portfolios into these types of investments.
We generally rely on stockbrokers and plan administrators to provide this type of advice and/or service, but these professionals would not charge commissions for investments outside of the stock market, so it is up to the individual investor. The first step in taking advantage of these opportunities is finding a reputable company that offers a truly self-directed IRA. There are a handful of companies, some commission-based and others that offer more predictable flat rates. Depending on the type of investments you plan to make, you will need to select the one that best suits your needs.
Whether you feel like the real estate boom is over or not, consider the fact that as the population grows to accommodate another 70 million people in the next two decades, 127 billion square feet of new or replacement structures to the existing 300 billion square foot base. Dig a little deeper and you’ll notice that even though the market in your area has fallen, there are still plenty of markets that are flourishing.
Additionally, in areas where real estate prices are falling, the number of foreclosure investment opportunities is increasing. If you’re looking for a potentially even higher return, consider investment opportunities outside of the United States. Self-Directed IRAs provide opportunities for investors who want to take a more active role in investing their retirement funds. These accounts provide investors with additional capabilities to invest in multiple markets, make time-sensitive investments, and diversify their investment portfolio. Non-traditional investments are not securities; however, unlike stocks, they can offer guaranteed returns. With self-directed IRAs, you have complete freedom and control of your retirement funds, which can create endless possibilities.
