What does “modernizing” your Self-Directed IRA portfolio mean? Years ago, it used to be that fixed income portfolios were pretty generic. Most people had the same types of assets and held those assets in similar proportions. In more recent years, investors have realized that their portfolios could perform much better if they were diversified and modernized into alternative investment options.
Let’s look at those two concepts separately.
Diversifying your fixed income portfolio is something most investors are fairly familiar with but may not understand the specifics. Diversifying your portfolio means that your portfolio contains lots of different types of investments that mature at different rates so that you will always have streams of passive income coming in and you will have money available to invest on a regular basis.
Modernizing your portfolio is a way to look at your retirement account in the new century. Traditionally, retirement accounts are made up of stocks with some long-term bonds. But, this isn’t the best option anymore because the long-term yields are not much more than the short-term yields. This means that you can modernize your fixed income portfolio by investing in shorter-term bonds and other options.
Self-Directed IRA alternative investment options to consider are:
• Trust Deeds
• Secured or Non-Secured Notes
• Discounted Notes
• Private Mortgages
Because of historic interest rate lows and the upswing in new construction, now could be a good time to invest in alternative fixed income strategies secured with your Self-Directed IRA. If you have a Self-Directed IRA, this is very simple. Contact your custodian/administrator to educate yourself about the process to facilitate this type of transaction.
No matter what you pick, modernizing your alternative fixed income portfolio is important, and it isn’t as hard as you think.
How do you keep your portfolio working for you?
I have established a relationship with the nation’s premiere Self-Directed IRA Company, Vantage Self-Directed Retirement Plans. If you are interested in opening a Self-Directed IRA or simply need to learn more about their services, I encourage you to contact them directly by emailing Info@VantageIRAs.com.
For all of your real estate investment needs, however, please be sure to contact Betsie Melter 480.734.3644. I am hear to help you in anyway I can.
