09/05/2024
What if the stock market crashed tomorrow?
Would you be ok?
Part of financial wellness is diversification, and when you can combine diversification with tax-exempt exceptions (like your 401k, Roth, IRA, etc.) It gets even better.
If you listen to the machine it tells you it is ok to have 100% of your investment in mutual funds, stocks, etc. which is absolute insanity.
A much healthier max for the following types is recommended: 60% mutual fund/stocks, 40% real estate, 20% gold/similar items, 20% bonds/CDs, and leftover play money can go into crypto, ETF, etc.
So here are some amazing ways to diversify, even with tax exemptions like your 401k or roth:
Real estate 401k/self-directed IRA: You can absolutely place an investment under this umbrella and diversify while also making the investment tax-advantaged!
Gold IRA/401k: Obviously buying and keeping gold yourself is the most cost-effective, but it isn't the safest and this is a great opportunity to use 401k funds by transferring them into a Gold IRA. Be careful to ensure the company actually stores the gold and never invest with a company that doesn't at least inform you of where your gold will be stored.
Other IRA's include: bonds, annuities, unit investment trusts (UITs), and exchange-traded funds (ETFs)