Stock Market Secrets

As the stock market takes yet another monumental dive and continues to thwart investors, the non-traditional investment market is gaining increased market-share. Investing IRA and 401(k) funds outside the stock market and into real estate, tax liens, and funding a business was all but unheard of even five years ago.

Today, however, investors are taking these opportunities to generate higher and more secure returns than the stock market may offer. Since 2000, investor participation in such investments has more than doubled and is projected to account for 20 percent of retirement funds by 2015. The lack of good, credible information and the inability to locate providers that offer these types of investment vehicles are often the most prominent reasons more people are not diversifying their portfolios into these types of investments.

Typically we rely on stockbrokers and plan administrators to offer this type of advice and/or service, but these professionals would not make commissions on investments outside the stock market, so it is left up to the individual investor to take charge. The first step in taking advantage of these opportunities is to find a reputable company that offers a truly self-directed IRA. There are a handful of companies out there, some commission based and some who offer more predictable flat fees. Depending on the type of investments you are planning to make, you will need to select the one that works best for you.

Whether you feel the real-estate boom is over or not, consider the fact that as the population grows to accommodate another 70 million people in the next two decades, 127 billion square feet of new or replacement structures will be added to the existing base of 300 billion square feet. Dig a little deeper and you will notice that even though the market in your area may have dipped, there are still a vast number of markets that are flourishing.

Also, in areas where real-estate prices are dipping the number of foreclosure investment opportunities is increasing. If you are looking for a potentially even higher return, consider investment opportunities outside of the United States. Self-directed IRAs provide opportunities to investors who want to take a more active role in the investment of their retirement funds. These accounts provide investors with additional capabilities to invest in multiple markets, make time-sensitive investments, and to diversify their investment portfolio. Non-traditional investments are not securities; unlike stocks, however, they can offer secured returns. With self-directed IRAs you have complete freedom and control of your retirement funds, which can create endless possibilities.