Last Updated on January 30, 2020
IRA Financial’s Adam Bergman discusses the Trade War between the US and China, and it’s impact on self-directed retirement accounts.
In his latest podcast, Mr. Bergman talks about the US/China trade war impact on retirement funds. Does the back and forth between the two nations affect your investments? If so, is it a positive or a negative? The answer may surprise you.
Trade War Impact on Self-Directed Retirement Accounts
Here at IRA Financial, we specialize in self-directed retirement account. A Self-Directed IRA allows one to invest in anything that is not prohibited by the IRS. Anyone can open, fund and invest with one. A Solo 401(k) is a popular option for the self-employed and small business owner. However, you must have some sort of self employment income to maintain one. No matter which you choose, IRA Financial will not limit your investment options. You’re free to do what you like with your funds, so long as it’s within the guidelines set by the IRS.
Whomever is to blame for the Trade War between the US and China doesn’t really matter. What does matter, is the effect it has on our economy. Global markets are affected as well, which can have a ripple effect. Most importantly, is the effect on every American’s bottom line, especially in regards to retirement.
Trade wars, real wars, inflation are just a few of the things that can have an impact on our economy. Typically, the markets don’t respond well to conflict. There’s been an increase in people looking to get out of equity markets and the stock market as well. Why? There’s been a spike in the cost for consumer goods, which is never good news for traditional investments. Also, the Chinese economy might go into a recession because of the recent sanctions. It’s never good when this happens to a powerful nation. Again, this will lead to other economies faltering.
What Should You Invest In?
First, let’s preface this by saying that we’re not here to offer investment advice. We’re not in the financial advisory business. We’re simply here to tell you what is allowed by the IRS and what we see our clients moving their money into.
Right now, real estate is (and generally, will always be) the hottest investment class. Since the housing crash over a decade ago, real estate has been a popular place for alternative investors. You can invest in rental properties for a stream of passive income. On the other hand, you might look for the big score with a fix and flip. Residential areas are generally more popular, but commercial real estate is big business, too.
Precious metals, especially gold, are at their highest values in a long time. When the economy is in turmoil, many people look at proven investments, like precious metals, to ride it out. It’s important to note, if you invest in metals with a self-directed retirement account, you shouldn’t hold them personally.
Cryptocurrencies, especially Bitcoin, have maintained an upward trend this year. While they are riskier than other asset classes, there’s big potential in them. Several clients have jumped on board the Bitcoin train. Despite lots of movement, it’s still hovering around $10,000.
Listen to This: The Best Way to Buy Bitcoin is in an IRA
The Trade War impact on retirement is clear as day. Get out of stocks, bonds and mutual funds and into the world of alternative investing. By self-directing your retirement funds with IRA Financial, no longer are you handcuffed by other financial institutions and banks.