Investing in Volatile Times
By Daniel Burgin
Recent stock market volatility has led some IRA investors to look at other options to meet their retirement goals. While the stock market may be up today, it can easily be down tomorrow, and that uncertainty may be a worrisome proposition for many investors. With interest rates near historic lows, bonds, certificate of deposits and savings accounts may not be an attractive alternative either. Fortunately, Polycomp administers Investor Choice IRAs, allowing for a wide range of alternatives to diversify investors’ retirement portfolios beyond traditional stocks, bonds, and mutual funds. While the IRS permits IRA investors to invest in anything other than life insurance and collectibles, the following are some of the most common alternative investment options:
Peer to peer lending: You can lend your IRA funds to people and/or businesses needing capital to start up or expand their operations, buy property, consolidate or pay off other debt, or any other use. This can be done in the form of a note, whether secured (by property or another type of asset) or unsecured. It is very important that the investor research each borrower in order to minimize the risk of default.
Real Estate: Real estate may be an attractive option for some, whether buying a property outright or investing in a Real Estate Investment Trust (REIT.) A REIT allows a real estate investor to diversify their assets among several different properties, managing their risk by spreading out their exposure. Polycomp has assisted numerous real estate investors to use their IRAs to invest in everything from rental properties, flipping houses and even farm land.
Private Stocks: Investing in private stocks enables savvy investors to put their assets to work with startup companies and other ventures too small to back a public offering. This can be an effective way to direct investments into projects and businesses the investor knows and understands without being constrained by stock market listing requirements or restrictions placed by traditional broker/dealers.
These are just a few of the investment options available through Polycomp. If you are interested in investing in an alternative arrangement, we can assist you through reviewing documents, facilitating the transfer of assets or cash, responding to any questions you may have, and ensuring compliance with IRS regulations. Polycomp can help you not only achieve your retirement goals, but also find peace of mind. To find out more, contact us at 1-800-952-8800.