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What Percentage of Your Retirement Should You invest in a Self-Directed IRA?

“What’s the best retirement portfolio mix?†For every investment advisor you ask, you will get a different answer. That’s because every investor has a unique financial situation and every investment opportunity holds a different potential for risk and reward.

Determining what percentage of your retirement fund you should invest in a self-directed IRA is an even more complicated question because there are so many alternative investment options available.

What’s the Best Retirement Portfolio Mix?

In traditional retirement investment planning there was a rule of thumb: subtract your age from 100 to get the percentage you should keep in stocks and the rest you would keep in bonds. However, this doesn’t take into account alternative investment options. Also, while this old adage takes age into account it doesn’t consider things like the number of working years remaining or the amount you need to feel comfortable retiring with at a certain age.

Adding Self-Directed Investments to Your Mix Mitigates Risk

Whether you’re at the beginning of your retirement planning or nearing the end of your working years, adding a self-directed individual retirement account (IRA) to your portfolio mix can be a good decision. The best way to ensure that your portfolio is protected against the next economic downturn is to keep a strong and healthy portfolio mix. Keeping 70% of your portfolio in stocks might have been the best choice for your parents, but is it the best choice for you?

Self-Directed IRA Gives You Control of Your Financial Future

The biggest reason our clients choose a self-directed IRA is so they can have a hand in securing their financial future. As a self-directed IRA owner, you have full control over how and when to invest. You can choose whether to invest in a rental property or precious metals. This not only offers you the flexibility to take advantage of good opportunities, but it also makes it easy for you to pivot in the event that one return on investment isn’t as high as you’d like.

What Percentage Should You Invest in a Self-Directed IRA?

Like any investment opportunity, a self-directed IRA should be taken seriously. Before you make an investment, we recommend you research the asset classes and rules and regulations regarding IRAs, as well as consider the different investment opportunities in which you might have experience. If, for example, you’ve spent years working in the financial industry, investing in accounts receivable or notes could be a great option for you. If you’re interested in keeping your investments flexible, precious metals could be a better option. The best investment mix is the one in which you are most comfortable and will help you meet your financial goals for retirement.

Learn How to Win Like a Wall Street Investor

If you want to learn more about self-directed IRAs and how to shore up your retirement resources, contact iPlanGroup to schedule a consultation and find out how a self-directed IRA could help you secure the financial future you’re working hard to achieve.

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