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Stock Market Volatility Intimidating to Investors

Stock Market Volatility

Stock Market Volatility

The Stock Market can be intimidating to new investors.  Bull Market.  Bear Market.  Stocks.  Bonds.  Dow Jones.  NASDAQ.  Yield.  Dividends.  Short Sale.  Pink Sheets.  Margin.  Leverage.  There’s a lot of information to take in when it comes to investing.  The information can be overwhelming, even for the smartest of people.  Therefore, most people look at their 401(k) or IRA and choose what seems to be the best investments.  Not enough people seek advice when choosing the right mix of stocks and bonds, etc.  However, there is hope.  There’s almost a limitless amount of investments you can make with retirement funds.  With the right planning, patience and advice, anyone can set him- or herself up for retirement.

Choices, Choices, Choices

If your only foray into investing are the choices your workplace 401(k) or an IRA you started at your local offer, you are missing out.  Stock Market volatility will always be around.  However, over the long haul, you will see decent returns.  But there’s always risk and uncertainty when the next crash will hit.  This is why it’s always better to have choices.

The only way to open up the landscape of investment opportunities is to find a provider that allows for a broader range in investment options.  Generally, that means finding a Self-Directed IRA and/or Solo 401(k) provider.  A Solo 401(k) is the better option if you are self-employed, although a Self-Directed IRA is great for everyone.  IRA Financial is at the forefront for alternative asset investments.

IRA Financial is a passive IRA custodian, which means we will never tell you what you can or shouldn’t invest in.  Our job is to set up your account and administer it annually so that it remains IRS compliant.  Therefore, we will never offer investment advice.  You’ll need to hire a financial advisor to make sure you are on the right track.

Alternatives to Mitigate Stock Market Volatility

Let’s start by saying that investing in stocks and mutual funds in not inherently a bad thing. If you can ride it out over the long haul, you’ll generally see decent returns. It’s just much better to not invest only in the markets. Let’s explore a few options you have when you self-direct your retirement funds. Note: all investment classes have risk. If they didn’t, we’d all be rich!

Real Estate

By far, the most popular alternative investment is real estate. Whether you are buying to renovate and flip, or looking for a steady flow of income with a rental property, the possibilities are endless. Everybody wants affordable housing, so if you can find the right deal, there’s lots of money to be earned. Just pay attention to the rules for real estate investing.


Unless you’ve been living under a rock, you probably know about cryptocurrencies. Bitcoin has received a lot of press from it’s rocket climb to near $20,000 to it’s fall back to Earth. Lately, it’s been picking up steam and it’s on the rise again (although it has come back down a bit). Cryptos are arguably the most volatile investment you can make right now.

Facebook recently introduced it’s white sheet for it’s digital currency, called Libra. This may revolutionize the crypto industry, but that remains to be seen. However, the technology that’s used, called Blockchain, is expanding to other uses as well. Throwing a couple bucks into Cryptos might not be such a crazy investment.

Peer-to-Peer Lending

Did you know you can use your retirement funds to make a loan? You get to decide the interest rates, when and how much money you’ll receive each month/week/quarter. It’s a great way to help someone in need who doesn’t have the funds and may not qualify otherwise for a loan. Maybe help your brother start his own business. Possibly help a friend by his dream home. Think of all the good you could do, while still seeing good returns.

Startup Businesses

Lastly, why not invest in yourself? Maybe you have a good idea for a business. Maybe you’re just tired of working for someone else. You can use retirement funds to help get your business project off the ground. Again, there’s plenty of risk in doing so. Half of new businesses fail in the first couple of years. You don’t want to risk your future in a half-baked attempt to go out on your own. Make sure you do you due diligence and come up with a fool-proof business plan.

Don’t Let Stock Market Volatility Get the Best of You

Take a breath and discover the opportunities that are out there for your retirement plans. The Stock Market can be way too much for some people, but don’t be discouraged. It’s good to have money there, but it’s better to diversify your portfolio with other assets. Self-directing is the way to go!

The first step is asking for help. You can talk to one of our self-directed retirement specialists pressure-free. If you have any questions or comments, give us a call at 800.472.0646 or fill out a contact form and we’ll call you!


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