How to Avoid the Blues from Stock Market Reviews

By all accounts, the stock market has gotten off to an absolute horrific start in 2016. Nasdaq fell by more than 7 percent; S&P suffered nearly a 6 percent loss. The Dow blue chip-index plummeted by more than 5 percent. In fact, this has been reported to be the Dow Jones’ worst welcoming in of a new year since records on it have been kept—and that would be since 1897.

The nightmare hasn’t ended with everyone waking up to the start of a new week—billionaire investors and other highly respected experts are predicting incredible (yet potential, because no one really knows!) dire straits for reasons ranging from geopolitical to every other problem the entire world is facing today.

Don’t think we are making light of it. We aren’t. For those interested in the finer details, read more about all that in this article we found interesting, published by

But, for those who want to explore alternatives that can help offset these woes and offer a bit of peaceful sleep because other investments are working successfully for you, read on:

How can you protect your retirement income against—well, anything these days?

The fact is, you can’t. Especially not if your assets are heavily vested in the markets. No investment is ever a guarantee, but if you’re involved in the dips and turns and frantic twists of the stock market, well, then your heart is stronger than many and may The Force be with you.

Yeah, that sounds all gloom and doom, and guess what? It should. Those familiar with the ups-and-downs the market presents know exactly what we are talking about. But, we are not suggesting everybody jump ship and bail, either. The market can and will certainly rebound, and some experts are already predicting the upswing. What goes up must come down and vice versa. That vicious cycle is simply how it is, right? The question is: when will it take a turn for the better and how will that affect the retirement income you’re trying to build?

Knowledge is power, control is key, and diversity is essential to the success of retirement planning.

This is Advanta IRA’s mantra, if you will: The very essence of who we are and what we believe. You see, in order to achieve a desired return on your investments, you need the knowledge to understand how those assets work. Stocks have a very good place in retirement portfolios, especially if your golden years are far enough away for you to weather the storms. Many people understand this and choose these traditional assets wisely, or perhaps, they have financial advisors choosing for them. Whatever works. Many people are successful doing so and your portfolio should contain a certain percentage of stocks because—diversity is essential.

However, the savvy investor understands that this diversity can be achieved in many different ways, using alternative assets to offset the percentage of stocks, bonds, and mutual funds typical investment brokers would choose for you. And, this is where that key control comes in: You don’t have to rely on the experience of others to manage your investment funds or make these critical decisions for you. Using a self-directed IRA, YOU can choose your own assets—draw on your own knowledge and expertise—and invest in less risky assets such as real estate, gold and silver, which typically stand the test of time. The great thing about self-direction is that you get to find what you know best and invest.

Here are a few examples of alternative investments:

  • Single and multi-family homes
  • Improved and unimproved land
  • Rentals (condos, townhomes)
  • Rehab-and-flips
  • Commercial property
  • Farmland
  • Timberland
  • Livestock
  • Foreign land
  • Tax liens and deeds
  • Private mortgages and loans
  • Oil and gas rights
  • Mineral rights
  • Accounts receivable
  • Businesses and/or franchises
  • Futures trading
  • Foreign exchange
  • Energy options
  • Sustainable investments
  • Private equity
  • Crowdfunding
  • Precious metals (gold, silver, platinum, palladium)
  • …and much more

You can even use a self-directed IRA to invest in stocks and lots of people do. Are you getting the picture now? Alternative investments offer so much diversity to investing portfolios and using them can offset even the worst stock market days, providing the potential returns you need to secure a successful retirement future. These investments are not affected by the performance of the stock market and can offer you peace of mind and a bit of security in reaching your retirement planning goals.

Additionally, there are several different plans you can self-direct to acquire these assets: traditional, Roth, SEP and SIMPLE IRAs, individual 401(k)s, and even health and education savings accounts.

So, no—don’t ditch the stock market in a panic and run. Instead, review your portfolio with your financial advisor and make sure your investments are spread across assets that offset each other and offer earning potential in several different avenues. These professionals can also help you determine what percentage you should invest in different categories to ensure maximum performance of your portfolio—regardless of what’s going on in the world.

Refine your investing strategy. Then, refine it again. Explore the world of self-direction and determine if it’s right for you. If you think it is, give us a call. We’ll be happy to explain it in more detail and help you get started today.

For more information about self-directed IRAs and alternative investments, please contact us.

About Jack Callahan

Jack proudly earned his bachelor’s degree in finance and multinational business from Florida State University and his law degree from the University of Florida College of Law. He established Advanta IRA in 2003 and has steadily nurtured and grown the company and the team every year since. Prior to founding Advanta IRA, Jack delivered specialized counsel to real estate investors, small business owners, and real estate professionals on tax, legal and financial matters. As an industry expert, Jack is a frequent speaker on self-directed retirement plans. He is an accredited continuing education instructor for the Florida and Georgia Bar Associations, Florida and Georgia Real Estate Commissions, and The American Institute of Certified Public Accountants.