Using an IRA for Alternative Investments Reducing Volatility
Updated: May 12
Are you looking for consistent gains with instruments you would normally stay away from? Now your able to enjoy their fruits through an IRA reducing the volatility.
Using an IRA for alternative Investments is certainly a smart idea and is not as common as you may think. You can still maintain that all-important balance, however, instead of using more aggressive stock - why not use alternative Investments in place of the more aggressive stocks. Certainly, alternative Investments can be riskier, however, so can aggressive stocks. In this article you can learn what an IRA is, the different types offered and the crucial balance that you must have, “ Understanding an IRA and Why it’s a No Brainer” applying the same principles of balance here, however, just replacing the more aggressive stocks with alternative Investments.
One of the most appealing aspects of an IRA is the larger selection of investment options available within those accounts vs. a 401k. Choices make both Roth and traditional IRA much more attractive options for your retirement savings and of course, the tax benefits.
Bitcoin - Every year more companies are starting to leverage Bitcoin technology. Bitcoin is by far the most popular digital asset in the world and constantly maintaining almost 70% dominance over the entire cryptocurrency market cap. In 2019, Bitcoin prices we're explosive, reconfirming the popularity around the world of this digital asset and the need for it.
That being said, Institutions are sopping it up like a biscuit. Microsoft has Created a permission list decentralized identifier (DID) Network, given the name, ION, Is being designed to run on top of the Bitcoin blockchain.
For Microsoft to take this bold new direction most certainly triggers a shift in the mindset of mainstream developers and is certainly making the prospect of integrating Bitcoin into business development more attractive each and every day.
Companies like Bitfury have made huge leaps with enterprise-focused blockchain solutions, such as (BaaS), using Bitcoin as a base layer. What makes Bitcoin such a great option four companies development platforms? The reasons are extensive:
Data Integrity - Bitcoin is the most trusted and secure digital asset and public blockchain is secured by 97 quintillion hashes per second, a mind-blowing number. Bitcoin Developers make security a top priority and have shown to be extremely cautious and restrictive about making any changes that could potentially introduce new security issues and compromise the protocol. It is very easy to analyze the data with blockchain explorers and using surveillance tools.
Smart Contracts - Opcodes were taken out of the Bitcoin that led to the prevention of smart contract implementation back in 2010. Projects like block streams liquid and RSK framework, Schnorr signatures, and Taproot have recently changed that and will make smart contracts via sidechains.
Reduce Costs - Layer 2 protocol on top of Bitcoin’s blockchain has lightning speed networks. Transactions and payments are now cheaper and faster than ever without compromising security at all.
Increased Transparency - This comes innately with the Bitcoin blockchain. Developers of Bitcoin have stayed away from privacy features seen other protocols. this is positive as these features can make transactions difficult to audit and verify, which of course would not benefit a business.
Development on top of the Bitcoin blockchain looks poised to accelerate in the coming year, helped by the critical first-mover advantage and the fact that Bitcoin’s developers aren’t being forced to solve growth issues such as the ones Ethereum and EOS are currently facing. Add to that the fact that the security concerns that top executives have with the public nature of the blockchain can be solved in the Layer 2 areas.
What does this mean for the average investor?
As more and more businesses get involved in Bitcoin, it means more and more businesses will purchase Bitcoin. Which, of course, will naturally lead to further increases in price.
With so many indicators pointing to an incoming bull market in the next few months, now is the ideal time to buy. Not only are you getting in at a bargain-basement price with the potential for huge growth, but you’ll be protecting your assets as we head into a very uncertain and unpredictable 2020.
Precious metals like gold, silver, platinum, and palladium have intrinsic value therefore they offer unique inflationary protection. they carry no credit risk and they cannot be inflated. That means you cannot print more of them. They also offer genuine “upheaval insurance” against financial or political/ military upheavals. From an investment standpoint, precious metals also provide a low or negative correlation to other asset classes like stocks and bonds.
A small percentage of precious metals in a portfolio will reduce both volatility and risk. That being said, every investment comes with its own set of risks. the risks that come with investing in Precious Metals is that prices for metals can drop during times of economic certainty, putting a damper for people who like to invest heavily in Precious Metals.
just like anything else, there's an important balance that needs to be met in the portfolio. To sum it up precious metals do provide a useful and effective way of diversifying a portfolio. You need to know your goals and risk profile before jumping into Precious Metals.
The alternative is to turn to financial experts that are familiar with the necessary balance of these assets to create a portfolio that has a nice growth curve and managed properly within the ever-changing financial environment.
Here is a company that I use personally that utilizes alternative Investments within the confines of an IRA and are the pioneers in this type of product. They are wonderful and we highly recommend them. (Click here now to get a free kit from Regal Assets) They are also rated #1 in the industry and with a stellar track record.
They have an A+ rating with the Better Business Bureau and has been featured in Forbes, Reuters, Bloomberg, Smart Money, and Inc. 500 for setting records as one of the fastest-growing companies in the US. I would say they have tapped into something unique and special. Most investors consider alternative investments at some point until they realize the dangerous volatility.
Through Regal Assets, extensive knowledge of cryptocurrencies and precious metals they have created a product that has the right balance to maximize growth and reduce volatility in a significant way. In fact, they have made their clients so happy they put together a client testimonials.
Regal Assets is a highly professional organization with expertise and excellent customer service. I highly recommend Regal Assets.
So, if you currently are using 401k like I was, you should certainly reconsider the options. With proper balance, some beautiful gains could be realized with instruments thought to be too volatile at one time.
Here are some relevant articles you may enjoy.