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Are there any retirement plans not connected to the stock market?
By Tom Dunn | July 22, 2006
Happy Senior asked:
I am interested in finding a legitimate retirement plan that is not connected to the stock market. I already have an IRA and I just wonder if there is anything else available to limit risk from the stocks. I am also aware of forex ira’s and bonds but Im looking for something truly unique.
Juanita
I am interested in finding a legitimate retirement plan that is not connected to the stock market. I already have an IRA and I just wonder if there is anything else available to limit risk from the stocks. I am also aware of forex ira’s and bonds but Im looking for something truly unique.
Juanita
Topics: retirement planning |
July 22nd, 2006 at 4:27 pm
a deferred annuity.
you’ll make regular payments until a specified date… then you’ll receive a steady income until death.
historically not a great return on your money… usually has an IRR of around 5-6% but varries with carrier.
it satisfies your request that it not be linked to the stock market… the market has no bearing on it… however pay extra attention to the credit rating of the issuer… since you depend on it’s solvency to make payments to you for the next 20 years or more.
July 23rd, 2006 at 7:06 am
…see if you can get elected to Congress (they have the absolute BEST retirement program on the Planet and the best health care anywhere).
July 23rd, 2006 at 12:16 pm
Basically you have to decide how you want to diversify away from stocks and then find an IRA custodian who will manage your chosen investment for you. There are darn few restrictions on the types of assets that can be held in an IRA. Most collectibles are not allowed, but U.S. gold and silver coins are permitted. You can also own real estate within an IRA, if the IRA is large enough to cover all of the costs of ownership. But be careful not to actually use IRA-owned real estate yourself. That will almost certainly be considered by the IRS to be a distribution and trigger possible taxes and penalties.
July 24th, 2006 at 2:16 pm
You can put income-producing real estate into an IRA. It’ll have to be a self-directed IRA though… You can hold hedge funds in your IRA, too…
You could try commodities, but they are just as volatile as stocks, so they are best used together with stocks (their correlation with stocks is low), rather than instead of stocks.
You can also keep your stocks, but enhance your risk-return profile with either portfolio insurance (buying out-of-the-money puts) or writing covered calls.
July 27th, 2006 at 12:49 pm
Try a Precious Metals IRA, or a Self-Directed IRA which allows you to put real-estate in your portfolio.