Stock Market Volatility: Alternative Investments May Distance Your Life Savings from Events Halfway Around the World

By Heather Taylor0 Comments

Many analysts had predicted it, but it doesn’t make the current stock market’s extreme ups and downs any easier to swallow if you’ve sunk most or all of your life savings into stocks.

The Dow Jones Industrial Average plummeted more than 1,000 points in seconds during the morning of August 24. The recent dramatic market swings are being compared to the fear that caused the large market drop in 2008.

Many people are feeling the pain – and déjà vu – if the success of their IRA or 401(k) is dependent on how the stock market performs.  

This feeling has led many investors to alternatives to the stock market, some of which can be held in self-directed IRAs.  

A self-directed IRA allows the account holder to choose investments in real estate, tax liens, promissory notes, oil and gas, and much more. This means that the investor can use his or her expertise to find and research potential investments and direct his retirement savings into products he knows and may be more comfortable with. Investors like Joe K. and John D. have found they prefer having this type of control over their investment choices.

“With all the things going on in the stock market, which you have absolutely no control over, at least with the IRA and dealing with property and so forth, I’m able to direct my investments,” says John D., a self-directed investor from Indiana. “If something bad happens, it’s my doing – not Greece, or Japan, or an earthquake.”

This isn’t the first time the stock market has dipped drastically, and there’s no telling when it could happen again. While no investment is ever guaranteed to be profitable, wouldn’t you at least like the peace of mind of knowing that you can make investment choices in tangible products where you may  be able to leverage real life experiences and knowledge?