Why Might I Need Hard Assets? How Do I Add Hard Assets to my IRA?

January 30, 2013

Why Might I Need Hard Assets? How Do I Add Hard Assets to my IRA?

Hard assets represent things that can be touched and that have concrete values. Hard assets can also be referred to as real assets because they are physical in nature and not conceptual like stocks and bonds. Oil, natural gas, gold, and land are all examples of hard assets. Hard assets can be used to produce other goods – metal in cars – or to generate income – real estate. Because hard assets represent tangible things that are in demand, they usually keep pace with inflation. Further, hard assets have little correlation with financial assets, such as stocks and bonds. Real estate, in particular, has long been a store of value and has generated income for investors in even the worst of economic times. Real estate is still relatively cheap and there may be opportunities to add this hard asset to your IRA depending on your specific individual situation.

Hard assets typically have little correlation with financial assets, so they may help reduce the risk in your portfolio. Hard assets can also potentially provide inflation protection and generate income. You can collect income from real estate which may provide you buying power in investments such as gold and other metals to help further diversify your portfolio. Investors can buy hard assets via financial instruments or directly through their IRAs. Traded Real estate investment trusts (REITs), Traded Master Limited Partnerships (MLPs), and Exchange Traded Funds (ETFs) are a few examples of financial assets that give investors access to hard assets. Mundo Financial offers its clients the services available to purchase real estate directly through their IRAs. Lots, raw land, rental properties, and commercial real estate can all be added to your IRA with the help of Mundo Financial.

However, there are also some risks associated with investing in hard assets. These include the possibility of market crashes and losses during economic downturns. In addition, hard asset investments can be more difficult to liquidate than other types of assets.

Mike Mundo and his team at Mundo Financial Services can help you determine if hard assets are suitable choice for your IRA. They can explain how Traded REITs, Traded MLPs, and ETFs work and how they address your risks, possible help protect you from inflation, and help you generate income. Mundo Financial can work with you to tailor a plan specific to your needs and investment goals. Mike Mundo and his team can leverage their knowledge and experience to help you build a well-diversified portfolio for you to help you secure your financial future.


This material is not intended to provide legal, tax nor investment advice. Diversification and/or asset allocation does not ensure a profit or protect against a loss in a declining market. Investment value will fluctuate with market conditions. Past performance is no guarantee of future performance. 

Investments in real estate may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographical sector. Other risks can include, but are not limited to, declines in the value of real estate, potential illiquidity, risks related to general and economic conditions, stage of development, and defaults by borrower.