ASHEVILLE, NC / ACCESSWIRE / July 14, 2020 / What is an “all-weather portfolio,” and what does it have to do with the Self-Directed IRA? A recent post at American IRA-a Self-Directed IRA administration firm based in Asheville, NC-recently highlighted this term and what it means for retirement investors.
To start, the “All-Weather Portfolio” is a term popularized by Ray Dalio, an infamous investor. Dalio’s all-weather portfolio is an interesting mix of stocks, bonds, and lower-risk assets like precious metals. As opposed to the traditional stock-heavy portfolio that includes some allocation to bonds to mitigate the risks inherent in the stock market, the All-Weather Portfolio is not looking for the strict maximization of returns. Instead, it is looking for the equitable distribution of risk.
That means that there is something in this portfolio for a broad range of economic circumstances. For example, one circumstance would be a period of rampant inflation. In such a scenario, an investor who holds an asset like gold and/or silver would likely stand to hold on too much of their wealth. On the other hand, someone who holds a lot of cash in their account would see the value of that cash diminish as inflation runs wild.
The All-Weather Portfolio is also based on mitigating risk through the broad application of different types of bonds. Because bonds are perceived as low-risk financial instruments-like when they are purchased from trustworthy sources like the U.S. federal government-investors will have additional risk management built into their portfolio.
“This article points out that the Self-Directed IRA is very efficient at helping investors spread out their risk,” said Jim Hitt, CEO of American IRA. “And it’s not always about pursuing returns, but rather about investors who want to build a long-term nest egg that they can rely upon when they need it.” Doing so, the post argues, adds peace of mind and a sense of security to one’s retirement portfolio.”
About: American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term “they” refers to American IRA, located in Asheville and Charlotte, NC and Atlanta, GA.”
SOURCE: American IRA, LLC
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