Everyone is aware that your IRA can be used to invest in stocks and bonds. These types of assets represent 97% of the trillions upon trillions of IRA dollars. You may not know this, but you can invest your IRA fund in nontraditional assets such tax liens, energy, and real estate. Yes. You can use your gold ira funds to purchase a home, a duplex, or a building for commercial purposes, as well other non-traditional assets. These types of investments are becoming more popular to diversify retirement portfolios. These people don’t want the stock market to cause their portfolio to plummet or increase dramatically.

Any good broker will tell that you should diversify your portfolio with various stocks, bonds, as well as mutual funds. Your portfolio should be diversified with different assets. This includes stocks, bonds mutual funds, energy and real property. Some of their portfolios actually increased in the current bear market. Their portfolio was well-diversified.

There are two main reasons people are investing more of their IRA funds to non-traditional assets. First, they don’t trust the stock exchange. The market has done poorly over the past few years. No one can predict what will happen in the next 5, 10, or even 20 years. They might not be able or willing to share information about what companies are doing in other parts of the country. However, they can find out about the hot property around the corner that could make a great rental property. This is one of the many benefits of a self-directed IRA. The more you know, the better your ability to make decisions in your investments.