Thought Leader Shares Reasons on Forbes Council Finance Why Investing in Alternative Assets Through Self-Directed IRAs May Counter Market Volatility
ROSELAND, NJ, May 25, 2023 /24-7PressRelease/ — Given the stock market volatility of 2022 and the threat of an impending recession, investors are seeking ways to diversify their portfolios to mitigate recession risk. Jaime Raskulinecz, CEO of Next Generation Trust Company, recently published an article on the Forbes Finance Council about countering that risk through the investments allowed in self-directed IRAs.
“The recession risk we’ve been hearing about this year has been fueled further by the high level of inflation, rising interest rates and higher prices, and the recent bank failures and takeovers that create skittish markets,” she noted. “We see this reflected in recent statistics on the stock market and banking industry.”
Recession predictions have increased
In her article, published here, Raskulinecz shared the following predictions that point toward a recession:
• Through March of this year, the S&P 500 index has struggled to meet, beat, or stay at the 4,000 index mark, which analysts note is a level of interest among options traders.
• Economists at Goldman Sachs raised the chance of a recession in the U.S. within the next 12 months up to 35% from 25%.
• CNBC reported that in a poll conducted among Wall Street Journal economists, respondents predicted that the chance of recession is at 61% this year.
• The investment management firm PIMCO noted the risk of a recession has increased due to recent upheaval in the banking sector.
• Research analysts at the think tank, Conference Board, projected at the start of 2023 that the probability of a recession in the United States was 99% probable based on their model. The prediction is for no growth or negative growth in our gross domestic product through the first three quarters of this year.
Countering retirement portfolio concerns through self-direction
“Since January 2022, many people saw their investment portfolios lose value and those values have yet to bounce back fully,” said Raskulinecz. “Stock market returns continue to waver for those who are invested in traditional assets. Plus, inflation has curtailed those individuals’ ability to save for retirement.”
As noted in the Forbes Finance Council article, Raskulinecz said that investing in alternative assets in a self-directed IRA can be a way to counter the prevailing volatility. This is because assets such as real estate, precious metals, royalties, private equity funding, commodities, and private placements, which these retirement plans allow, are not tied to stock market performance. Therefore, she added, investors who include these nontraditional investments within their retirement account can take advantage of certain investment opportunities that arise, or invest in assets that reflect their values or interests.
She explained that investors who are comfortable making their own investment decisions, doing all the research, and conducting full due diligence about the assets may consider self-directing their retirement portfolio and including nontraditional investments. As with typical IRAs, the investments within a self-directed IRA grow tax-deferred or tax-free (depending on whether the account is a Traditional or a Roth IRA). And the returns on these nontraditional investments are not correlated with the stock market.
“At a time when the markets are causing many Americans to open their brokerage house statements with trepidation, and threats to the economy’s recovery prevail, this retirement strategy may help investors combat the negative effects of a potential recession,” said Raskulinecz.
The full article is on Forbes Finance Council at https://bit.ly/3BW38VS. For more information about self-directed retirement plans and the alternative assets these plans allow, visit www.NextGenerationTrust.com. Read more about Jaime Raskulinecz here.
About Next Generation Trust Company, LLC
Founded on the philosophy that every person should have control over their retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Trust Company acts as custodian for all accounts and its sister company, Next Generation Services provides comprehensive account administration and transaction support. Next Generation’s neutral third-party professionals expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or [email protected].
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