A traditional investment are generally assets provided by banks and financial institutions. These include stock, bonds, equity shares, bank CDs among other assets. You can use a retirement plan to invest in traditional assets, or personal funds. In order to mitigate risk, you should diversify the investments in your portfolio, which is why traditional investments should always be complimented with alternative investments.
When you add a brokerage account to your Self Directed IRA LLC or Solo 401(k) Plan, you receive benefits such as alternative investments and the freedom of full checkbook control. Additionally, you gain direct control over the traditional investment mix of stocks, bonds and mutual funds. Your profits are tax-free and go back to your retirement account. Your purchases are made as quickly as you’re accustom to – whether online or through your broker.
Self-Directed Investment Clubs
An alternative approach to traditional investment clubs is the Self-Directed Investment Club. These clubs are the “do it yourself, but not alone” approach. Like traditional clubs, self-directed investment clubs meet regularly. They share analysis, insight and information in pursuit of investment opportunities. The difference is that after you all make investment decisions, club members invest through their individual retirement accounts.
Benefits of Self-Directed Investment Clubs
Education comes in many forms. Merely speaking with other investors will be a comfort and enlightenment to someone who is doing this alone and learning along the way.
Alternative Investments are excellent for providing greater diversification and often produce great returns. It’s important to note that finding the right alternative investments can be intimidating. Even for investors with the most experience.
However with investment clubs, you share experiences and discover new ideas that may open your eyes to areas and industries you may not have considered.
Additionally, Self-Directed IRA LLC and Solo 401(k) Plans provide the highest degree of investment freedom and asset protection. This combination is very cost-effective for tax deferred alternative investing. Beyond that, the most valuable aspect of an investment club continues to be the wider field of vision the group creates. Furthermore, every individual has the ability to alert each other to the good and not so good opportunities that abound across every investment class.
At IRA Financial Group, we provide the documents for opening your account and you invest as you please. Perfect for individuals and investment clubs!