People often wonder are my IRA investments guaranteed, and the honest answer is ‘no’. But there are definitely ways to protect your assets through diversification, and you can accomplish this in a number of ways, specifically through real — or tangible — investments. In this episode, David Moore, with IRA Advantage, explains.
Are my self-directed IRA investments guaranteed?
Wouldn’t that be great? Wouldn’t that be wonderful to have all your investments guaranteed? Unfortunately, they’re not. Just like anything else, I think the biggest issue is, as you’ve heard me say before, “self-directed” is not a legally defined term. It’s just a term that describes an account that allows you to go buy what you want to buy. When we’re talking about self-directed accounts, it’s no different than any other account. You’re just changing who the custodian is. So, as far as investments, it’s really no different than any other account. Your self-directed IRA can buy anything you currently own and yet it can buy anything else the law allows.
Naturally, you’re going to look at things and sort of figure out what’s going to be the best diversification for you where we look at… One of the big objections people have about buying real estate with an IRA is that it’s not liquid, so people point at it and say, “Well gee, the lack of liquidity can cause problems with required minimum distribution and things like that.” Well, the lack of liquidity gives it the strength. I like to call a lot of these investments that are called “alternative investments”, real investments. I call them real because they are tangible. If you’ve heard an ad for gold or silver lately, it’s all selling tangible. Real estate’s a tangible asset. It can’t go away if it’s debt-free, unless you don’t pay property taxes. Those things are very good. They’re going to work out over time.
We don’t sell investments in here or give investment advice. We just provide the investment vehicle people want or need to make the investments they want to make. When we’re looking at whether a guaranteed investment’s there, there’s no guarantees in life. Diversification’s going to be the best solution for you going forward. It’s our opinion you ought to be taking a look at real investments like real estate and take advantage of those things. When you’re looking at real estate or buying notes, making loans, precious metals, even crypto stuff, the bottom line is you’ve got the ability to diversify into these things if you want. If you feel those investments are going to be appropriate, and if you’ve got specific knowledge on something, the great thing about tangible assets, in the Wall Street world, “alternative investments,” is you can use knowledge.
If you’re a real estate broker and you want to go buy real estate, do it. That’s totally fine. If you’re a mortgage broker, you want to make hard money loans, do it. Buy notes, do it. Take advantage of it. Minimize your risk and use everything that’s out there and anybody in the investment world is going to tell you, diversification’s your best friend and we’re going to put it out there that diversifying through tangible assets, in Wall Street-speak, “alternative investments,” is going to be definitely something you want to do, and it’s going to be best for you over time.
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