American IRA Discusses Is a Self-Directed IRA Inherently Risky?
ASHEVILLE, NC / ACCESSWIRE / March 29, 2021 / Many investors, used to working through an employer-sponsored retirement plan, may believe that a Self-Directed IRA is inherently riskier compared to other styles of investing. But a recent post at American IRA, a Self-Directed IRA administration firm based in Asheville, NC, questioned this assumption. In the recent post, American IRA talked about how investors choose their own levels of risk with a Self-Directed IRA.
In a Self-Directed IRA, an investor is in charge of selecting specific investments. A Self-Directed IRA administration firm serves as the “custodian” on the account, handling issues like paperwork. But the administration firm does not make investment decisions. And while a Self-Directed IRA opens up the possibilities of investing in alternative asset classes (such as real estate, precious metals, and private company stock) for investors, it’s still up for the investor to decide the risk tolerance of the overall portfolio.
The result, according to the post, is a high degree of flexibility. “The truth is, an investor chooses their own risk level,” notes the post, when using a Self-Directed IRA. This means investors can use a Self-Directed IRA to construct a conservative portfolio. Or an investor can seek ambitious returns with a highly aggressive portfolio.
Investors who are not used to choosing investments may view this arrangement as inherently riskier. Why not defer to those investment managers who can offer sage advice? But investors who use a Self-Directed IRA to find growth in asset classes with which investors have more experience can avoid such risk.
“A Self-Directed IRA is really a way for investors to call their own shots,” says Jim Hitt, CEO of American IRA. “This post explains why the risk profile of a portfolio is always up to the investor. And a Self-Directed IRA can include a riskier, more ambitious growth strategy. But it does not have to. It’s up to the investor calling the shots.”
For more information about how Self-Directed IRAs work, visit the post at www.AmericanIRA.com. Interested parties may also contact the Self-Directed IRA administration firm by dialing 866-7500-IRA.
About:
“American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $500 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties, or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term “they” refers to American IRA, located in Asheville and Charlotte, NC.”
SOURCE: American IRA, LLC
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