subject: Diverse Investments [print this page] It makes sense that individuals want the most for their money. What does not make sense is that many people only invest in one type of market. If that market fails, then the entire portfolio fails.
Successful portfolios are ones that are diverse. Being diverse means that the investments are in various different markets. This gives the gain then of when one market is going down, another one will probably be going up.
Diverse portfolios are not get rich quick portfolios. They are there to insure that savings are not sucked down the drain. This is especially important to people investing in the self directed IRA.
For many individuals, the self directed IRA is the only retirement savings account that they have. If they loose their investments, they loose their retirement income. That is why is it very important to diverse investments.
Stocks and bonds are the traditional form of investments and follow similar patterns. When stocks are going down, then bonds are usually going down. Investors need to invest in other things like precious metals.
Investments in precious metals are doing well in this inflation economy. One specific one that is doing so well is gold. It is doing so well because it is always in demand.
Gold has always been thought of as rare and beautiful. These qualities is what made people want some gold of their own in the beginning. Now it is because gold seems to be protected against inflation.
The value of gold is not in the face value, but in the weight of the gold. Investments like stocks, bonds, and cash are decreasing in value because the American dollar is decreasing. Gold is one of the safest investments for a self directed IRA during inflation.
