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During a Volatile Stock Market, Alternative Assets Can Shine a Brighter Light on Retirement Savings

Published on March 1, 2016

Things are tough out there for people with stock market investments. Stocks have been doing the loop-de-loop since the start of the year and ended the first trading week of February with big losses. In an article on TheStreet.com, author Richard Gobel stated that, “For the year 2016, the DJIA (Dow Jones Industrial Average) is down 7%, the S&P is down 8.17%, the Nasdaq has lost 12.93%, and the Russell 2000 has lost 13.22%.” He goes on to say that, “… the Russell 2000 is down an incredible 24% from its June 2015 high and the Nasdaq is lower by 16% from its July 2015 high.”
Add to this the fact that global financial markets are struggling to stay in the positive column and China’s economy is in slowdown mode, and it’s no wonder Gobel warns us that things could get dicey in the months ahead for stock investors. Recently (February 9, 2016) the governor of the Bank of France, Francois Villeroy de Galhau, claimed the volatility in financial markets is “excessive.”There is a light in all this financial market darkness, and it’s the ability to invest in alternative assets in a self-directed retirement plan.

Afraid of the dark? Try self-direction as a retirement strategy

For people who are afraid to open their brokerage statements for fear of seeing what happened to the their IRA’s value (hoping they don’t see a plunge on those graphs), learning more about self-direction can be a great way to shine a light on their retirement savings.

Savvy investors, take note: you can invest in what you already know and understand, and build potentially greater retirement wealth, by including nontraditional investments in a self-directed IRA.

self directed IRA plans

self directed IRA plans

Do you already invest in real estate? How about precious metals? Do you prefer to invest in hedge funds or private placements? How about becoming a Broadway producer (as in, investor in a show) or make a loan to someone you know to open a restaurant or pay for college?

If so, and if you understand how to make these investments, you could do so through a self-directed retirement plan, and enjoy the same tax advantages of a typical retirement account. As a self-directed investor, you can take control of your future by including non-publicly traded assets in your account. You make all your own investment decisions, it’s up to you to thoroughly research and understand the asset and work out all the arrangements concerning the investment. The administrator/custodian, like Next Generation Trust Services, makes the transaction on behalf of your account according to your instructions, manages all the paperwork, and handles all the necessary reporting.

At Next Generation, we also provide education to self-directed investors to help them understand the IRS guidelines, and can answer questions about how self-direction works.

Our white paper about self-directed retirement plans will explain all the basics to you.

Our helpful informational videos can provide additional tips (check back periodically for new videos).

Ready to leave dark stock market days behind you?

Want to lighten up your future with self-directed investments? Contact our professionals with any questions you have about this strategy at 888.857.8058 or Info@NextGenerationTrust.com; or go to our Starter Kits to open up your self-directed retirement plan today.

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