Stock Market Ups and Downs Have Your Head Spinning? Try Self-Directed Investments Instead

Published on February 13, 2018

February 2018 got off to a wild start for the stock market, with the Dow Jones Industrial Average plummeting almost 1600 points on February 5th. In fact, it was the biggest intraday point drop in history despite there being no economic news to signal the downturn. It staggered in the following days, making many traders and investors nervous considering the bull market the US has been experiencing. The S&P 500 index also dropped 4 percent that day.

The stock market had been surging before this event, with the Dow Jones Industrial Average crossing the 25,000-point threshold for the first time earlier this year. No question—something got the Wall Street bull by the horns this month.

Long-term investors expect volatility and will probably ride it out; after all, it’s the nature of the stock market beast. But many investors prefer to avoid this type of investment environment. Rather than deal with investments vulnerable to market conditions, many savvy investors are controlling their retirement savings through self-directed retirement plans. As we noted in a previous post, interest in alternative investing is growing.

Self-directed investors are putting real estate, private equity, precious metals, notes and many other alternative assets into their self-directed retirement plans. They’re researching the assets, making informed decisions, and including investments they already know and understand—with the same tax advantages of regular IRAs, HSAs, or 401(k)s. Sure, every market has its ups and downs, but self-direction puts the individual investor in the figurative driver’s seat when it comes to saving for retirement. If you’re someone who enjoys making your own investment decisions, has knowledge of certain alternative assets, and is seeking ways to build retirement savings without those wild rides on the stock market, self-direction could be right for you.

Our informative video series walks you through the basics on self-directed retirement plans as well as the steps to complete our starter kits for those opening a new account or sending investment instructions. Want to know more? Get the monthly newsletter or contact the Next Generation team with your questions: Info@NextGenerationTrust.com or 1.888.857.8058.