Next Generation Shares Industry Insights Regarding High-Net-Worth Investors and Alternative Assets in Self-Directed IRAs
Published on March 22, 2023
ROSELAND, NJ, March 22, 2023 /24-7PressRelease/ — Next Generation Services has published information regarding how self-directed retirement plans and alternative investments may enable high-net-worth (HNW) investors to build more retirement wealth while also shielding their assets from market volatility. HNW individuals are typically defined as those with at least $30 million in investable assets.
“The latest research shows that self-directed investors have an advantage in the marketplace because they can diversify their assets, protect their portfolios from risky investments, and have the potential for more lucrative returns,” said Jaime Raskulinecz, founder and CEO of Next Generation. “This strategy provides value to high-net-worth individuals seeking tax-sheltered investments that tend to not correlate with the stock market.”
In the face of market volatility, wealthy investors turn to alternative assets
Anyone with heavy investments in stocks and bonds in 2022 has felt the pain of sharply declining portfolio values. Next Generation shared that:
• The disappointing stock market performance led 80% of investors ages 21-42 to seek alternative investments
• Investors with a net worth of at least $5 million have 9.1% of their assets in alternatives to stocks and bonds, up from 7.7% in 2021
Additionally:
• Among high-net-worth individuals, 81% invested in alternative assets in 2020, which comprised half of this group’s assets
• Investors with a net worth of at least $1 million allocated 26% of their assets to alternative investments that year
• Given market conditions, savvy investors and HNW individuals seek long-term investments such as real estate, precious metals, private equity, hedge funds, secured and unsecured loans, among others
Raskulinecz noted that alternative investments are often less volatile than stocks and bonds and can offer a higher rate of return. As these assets provide a hedge against market volatility, making investments within them can reduce risk while enhancing the investor’s ability to build more retirement wealth through tax-sheltered retirement vehicles, such as a self-directed IRA.
However, HNW investors aren’t the only ones who can include alternative assets in their retirement portfolios. In fact, anyone can self-direct their retirement investments and include alternative assets within a self-directed IRA, regardless of their financial stature.
Next Generation’s blog and webinars offer educational information about self-direction as a retirement wealth-building strategy and the many investment options allowed in self-directed IRAs. Learn more at www.NextGenerationTrust.com.
Founded on the philosophy that every person should have control over their retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Services provides comprehensive account administration and transaction support, and its sister company – Next Generation Trust Company – acts as custodian for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or NewAccounts@NextGenerationTrust.com.
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