Everywhere I turn, I hear complaints about the volatility in the market.  I turn on CNBC and it’s all about how volatility is erasing billions of dollars in value from investor portfolios.  I pick up the Wall Street Journal and there are constant pictures of traders looking super stressed about the massive daily swings they are experiencing.  The recent volatility has led to market uncertainty and an alarming decrease in investor confidence.

What is my response to these financial news stories?  A joyful chuckle.  I am not joyful because volatility causes people anxiety and stress.  I am joyful because it reassures me that I made the right financial choice by investing my IRA savings outside the stock market!  This is why I love nontraditional asset strategies, such as real estate, so much.  The lack of correlation my alternative investment portfolio has to Wall Street based options enables me to have peace of mind, which in my opinion, is one of the main goals as an investor.  I want to feel comfortable about where my money is working for me and not be constantly concerned about its wellbeing.  I have the luxury of not having to panic or get stressed out about the constant ups and downs being experienced by the majority of savers in our country who have chosen to place their faith in the stock market.

Are my alternative IRA asset values going to be affected by who is elected President next year?  No.  Are my IRA asset values being affected by the impact of tariffs or trade wars?  No.  You see, my alternative investment holdings aren’t influenced by macro-economic or political conditions.  Are they completely protected against investment losses and risk?  Of course not, but the risk is limited to specific independent factors, not influenced by broad issues that conversely do impact stock market conditions and results.  So when others complain about the volatility in the market and express their emotional concerns about how news stories will possibly put a negative dent in their retirement plan, I can’t relate.

As AZREIA members, most of you already share my sentiment given your belief that real estate is a great way to achieve financial independence.  The missing piece is making the connection that your tax-favored IRA savings can serve as an effective additional funding source to purchase the next great real estate deal.  Some advisors and investors shed a negative light on real estate IRA investing because of the “lack of liquidity.”  When I hear that, I immediately remind them that is because of their illiquid nature that I love owning real estate in my IRA… an illiquid investment vehicle by design.  I can’t touch my IRA money without penalty until I reach the age of 59 ½ anyway, so investing in illiquid assets which may take 3-7 years to produce my expected returns is perfectly fine with me.  In my IRA, I would much rather have illiquidity, than constant volatility, and I know that our alternative investor IRA clients agree!

So the next time your friend, co-worker, neighbor or family member is complaining about the volatility they are experiencing in their retirement portfolios, be sure you encourage them to call Vantage and learn about the power of Self-Directed Real Estate IRA investing!

To learn more about Real Estate IRAs, please visit: www.VantageIRAs.com/AZREIA

By J.P. Dahdah, Chief Executive Officer Vantage Self-Directed Retirement Plans