SOURCE: Broad Financial

Broad Financial

July 30, 2012 11:32 ET

Investors Find Room to Express Themselves in Retirement

Broad Financial Sees a Trend Towards More Alternative Investments

MONSEY, NY--(Marketwire - Jul 30, 2012) - The standard retirement investment usually consists of market products like mutual funds or similar Wall Street assets. However, with the rise of market volatility, investors have begun to actively look for alternative investment platforms. One of the platforms gaining a boost in popularity from this trend is the self-directed IRA. As a result of this move, the investments themselves have taken on a more alternative flavor.

Mark Friedman, a retirement specialist at Broad Financial, has tracked the move away from standard assets. "Initially everybody just wanted to get in on a piece of real estate or gold coins. However, as the freedom of the plan has clarified itself in the consumer consciousness, we have seen self-directed IRAs move into ice cream stores, fitness centers, and book publishing. One Broad client actually used his retirement funds to start a goat farm."

One of the common arguments in the financial community against these platforms is the far reaching nature of the investments. Many financial planners feel that investors would be better suited with products that show a record of stability. Daniel Gleich, the COO of Broad, feels that the new diversity of investments is actually a point in the clients' favor. "Investors are just gravitating towards those assets that they know and understand. It makes sense that a woman who has worked in fitness for the past twenty years has a solid grasp of the industry and would know how to turn that knowledge to profit. What would not make sense is for her to put her money into assets that she doesn't understand, even if those assets are currently riding a wave of popularity."

Mr. Gleich feels that rather than going against the financial norm, these investments are more faithfully adhering to the mantra of diversity that financial professionals often espouse. "Investors understand that diversification is essential, but they are also coming to understand that holding different stocks is not true diversification. That can only be accomplished with alternative assets. This truth is brought home every day as investors see their IRAs being hammered in the current stock market."

With Mitt Romney's retirement fund making news, and a national move back towards American ingenuity, it looks like self-directed IRAs might be reaching the tipping point. It might just be a matter of time until alternative is the new norm.

Contact Information

  • Daniel Sentell
    Director of Communications
    845.352.3000
    Email Contact