By J.P. Dahdah, Founder & CEO of Vantage
Self-Directed IRA investors take control of their financial journey and understand that hope is not a strategy.
In this post, we touch on the Self-Directed IRA investor mindset. This mindset is needed to achieve financial success and develop a sound alternative asset portfolio for your retirement goals.
Have you watched your retirement portfolio ebb and flow with the stock market without experiencing meaningful returns? If so, you are not alone. Most people place their money in an IRA or 401K account and forget about it. Over the years, they hope it will magically produce the balance they need to be financially independent.
Unfortunately, this strategy can yield poor returns and leave you with a smaller nest egg than needed.
On the other hand, Self-Directed IRA investors take control of their financial journey and understand that hope is not a strategy.
Thought, Education and Planning
Think of investing as a business. That business requires thought, education, and planning. Just as you wouldn’t glance over a few resumes and make a half-hearted hiring decision in your business, you need to spend time analyzing potential private investment opportunities.
Embrace Your Financial Responsibility
Once you realize that you are the only person concerned about your long-term financial success, you can claim responsibility for your investments. This can feel uncomfortable, even scary at times. Often, we doubt our financial acumen and lack the confidence to make our own investment decisions.
By placing the onus on yourself, you can direct your financial destiny.
Many alternative investments offer diversification and stable returns, such as real estate, private equity, private notes, and private company opportunities. The key is understanding that you are the individual responsible for generating sufficient retirement income. Not a mutual fund portfolio manager you have never met. By placing the onus on yourself, you can direct your financial destiny.
Know the Tools
Establishing a Self-Directed IRA can be the first step in taking complete control of your financial future. Keep in mind that I am using the word control, not work. Being a Self-Directed investor doesn’t mean that you have to do all the work yourself. It means that you must assume full responsibility for the decisions that matter most.
This type of IRA allows you to actively manage your chosen portfolio holdings to find multiple ways to earn returns beyond traditional investments.
Self-Directed IRAs provide access to alternative investments and allow you to create a diversified retirement portfolio that can generate optimized, non-correlated, risk-adjusted returns versus the volatile, public offerings on Wall Street.
By changing your investor mindset, you can invest by design and not default, generating the appropriate returns that will allow you to retire timely and comfortably.
If you want to learn more about how to have a Self-Directed IRA investor mindset, contact us. We will answer your questions and walk you through what it looks like to be a Self-Directed IRA investor.