IRA investments

Ever wonder why, for years, you have always invested in stocks and bonds and mutual funds with your IRA money?  Did it ever occur to you that you were missing out on a significant part of the market that a truly diversified portfolio would have in a well balanced retirement plan - - namely real estate.  Or other things for that matter, like start up businesses, partnerships, LLCs, joint ventures, etc.   

.  According to the law, you can use your IRA money to invest in just about anything, except collectibles (art, stamps, wine collection), insurance products and stock in a subchapter S corporation.  That has been the law since the IRA was created in 1974 as part of ERISA (Employee Retirement Income Security Act).  So much for transparency. . . 

Well, obviously, more and more people are realizing this is a potential source of funds to diversify their investments.  In fact, a recent 2010 Morningstar Advisor poll found that 58% of investment advisors feel that alternative investments “will become as important or more important than traditional investments in the next five years”. Fortunately, the financial advisors that I work with assisting my clients realize this and have incorporated this concept into their financial purview.