As the Stock Market Tumbles, Can Your Retirement Savings Weather the Storm?
Published on February 26, 2019
December 2018 was not kind to the stock market, with U.S. stocks falling about 10 percent—posting their worst December since the Great Depression. Many retirees fear their losses in the market will deeply affect their retirement nest egg. Rumors of a possible recession in the near future add fuel to that fire, along with the following:
- Apple, Samsung, beverage conglomerate Constellation Brands, and home builder Lennar have lowered their financial forecasts.
- 72 S&P 500 companies issued earnings warnings during the fourth quarter of 2018.
- Analysts are now looking for single-digit earnings growth for the first three quarters of this year.
While working, Americans still have time to make up for declines in investment values or bad investment moves. However, retirees who are no longer contributing to a retirement plan could be in for a scary ride. With fewer traditional pensions available in the workplace—replaced by more 401(k) plans and IRAs—investors of all ages need to become savvier about how they invest their retirement funds.
Weather the stock market storm with a self-directed IRA
Are you among the investors whose stock portfolios tumbled in recent months? It can be harrowing, wondering if you’ll have enough to live on during your retirement years—even after all the years you’ve been putting money into a retirement plan. Whether your retirement time horizon is in the distance or approaching in the foreseeable future, there are strategies available to catch up on your retirement savings. One emerging and popular option is to utilize a self-directed IRA.
For investors who know and understand nontraditional investments outside of stocks, bonds, and mutual funds, investing through a self-directed IRA means stepping away from the stress of an up-and-down stock market or sluggish bonds. Instead, savvy investors can include an array of alternative, non-publicly traded assets within their self-directed retirement plan, such as real estate, private equity, precious metals, and many more.
Self-direction enables investors to control their investments and their futures by building a more diverse retirement portfolio. As a self-directed retirement plan administrator and custodian, Next Generation makes it easy to open an account with these helpful starter kits. If you have a question about the types of alternative assets self-directed IRAs allow, contact Next Generation by email at NewAccounts@NextGenerationTrust.com or call 1.888.857.8058.Back to Blog