There’s a World of Investing Beyond Stocks

By Brendan Hughes0 Comments

As those with self-directed IRAs are aware, investors aren’t confined to stocks and bonds when it comes to places to invest your money.

This can be welcome news to the many investors who haven’t been able to tolerate the tumultuous market, according to a recent MSN Money article.
“The S&P 500 shed 46 percent from Aug. 25, 2000, to Oct. 4, 2002. Just five years later, during the housing bust, the S&P 500 lost 56 percent of its value from Oct. 12, 2007, to March 6, 2009.  Even if you love to invest in the stock market, the last 14 years might have shaken your confidence.”

Many investors might have thought that the market was one of the only options for building a nest egg, but the article highlighted eight other viable options for investors to consider. Some of the alternative investments mentioned include:

Precious metals: While the stock market was dropping, precious metals including silver and gold continued to rise, according to the article.
Peer-to-peer lending: You can loan money to others at a more reasonable interest rate than what you would receive elsewhere, but still make a decent return rate for yourself.
Real estate:  “If you're interested in:
  • significant cash flow
  • leveraging other people's money
  • enjoying large tax write-offs,
then real estate can be a great choice,” the author writes. He warns, though, that it might not be for everyone and that it could take significant time and resources.

All of the investments mentioned here can be accomplished using funds from your IRA. A self-directed IRA allows the investor the flexibility to make investments beyond just stocks and bonds. Get more details on the types of self-directed accounts available.