What are the advantages to diversification? True diversification is NOT owning different stocks and mutual funds no matter what your stock broker tells you. True diversification involves spreading your retirement beyond equities to include investments in asset classes such as:
- Real Estate (Land and Property)
- Fixed Income (Bonds)
- Commodities (Grain, Gold, Oil)
- Cash Equivalents (Money Market)
You can hold all of these investments tax-deferred within a self-directed IRA, permitting a greater, and true, diversification of assets.
Why It Makes Sense
Why should you diversify your retirement portfolio? A well-diversified portfolio helps to reduce the risk of substantial losses in a range of economic conditions and provides steady, proven growth to your retirement account. Retirement investing should be less about shooting for the stars and more about avoiding the sinkholes. If you’re not already, let this current downturn be your wake-up call and diversify your retirement savings NOW before the next downturn delays or severely alters your retirement
plans.
