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Between Investments? What Can You Do While You Wait?

April 27, 2020

Covid-19 has provided one of the most uncertain short-term environments for making longer-term investment decisions.  Whether it is conventional publicly-traded stocks and bonds, or even private investments, there seems to be a pause in transactions; reasonably so, as we all catch our collective breaths and try to puzzle out what might happen in the time frame between now and when a successful vaccine is available.

With a bit of extra time for reading due to travel restrictions, I came across an article from Sir John Templeton, the famed mutual fund wizard and founder of the Templeton Growth Fund.   Back in 2003, he said, “If you want to have better performance than the crowd, you must do differently than the crowd”.  He may well have described our NuView IRA clientele who always have a bit contrarian in their investments.

So, what are we seeing people do within their self-directed retirement accounts?  There has been a significant upsurge of inquiries and transactions in three investment types:

  1. Gold and Silver
  2. Cryptocurrencies, largely Bitcoin
  3. Brokerage accounts

Gold and Silver along with Platinum and Palladium are the only precious metals that can be legally held in an IRA.  Despite what you may have heard from the media, it will require a qualified third-party depository to hold the assets, and NuView has a working relationship with two of the largest in the country.

Proponents have often argued that having a portion of your wealth in precious metals could serve as a hedge, or insurance should the dollar weaken significantly.  They point to the recent surge in deficit spending as underscoring the likelihood of this event relatively soon. 

Cryptocurrency, including Bitcoin, may also be held in an IRA but will require that a separate LLC be formed first to hold the asset, due to issues surrounding the titling of this asset.  Once the LLC is properly formed (always consult an attorney or qualified individual to structure this correctly), then NuView IRA can be instructed to fund the LLC with your IRA.  Once the LLC is funded, it can purchase the Cryptocurrency in the name of the LLC.

Advocates of Bitcoin also argue that paper or fiat-backed currencies may become increasingly in disfavor due to government restrictions and regulations.  However, if you have followed the market trends of Bitcoin, you will see a great deal of volatility, and traditional markets and national governments are reluctant to embrace the currency as it is difficult to trace and tax.

Many of our clients are surprised to learn that they can trade stocks, bonds, and mutual funds under the Nuview IRA umbrella.  Because of the recent market crash(es) and corrections, some clients want to engage in “bargain shopping” for one or two stocks they feel are undervalued.  With a fully self-directed NuView IRA account, you can add the choice of public trading to all the private investment choices possible and legal in an IRA.

Simply contact NuView IRA, and we can open a TD Ameritrade account and fund it with the amount you wish from your IRA account.  You are then free to trade at will directly with TD Ameritrade. Should you want to move additional funds into or out of TD Ameritrade, all you must do is inform us by using your NuView portal.

Whether you wish to use these strategies or simply stay in cash while you wait for the right investment to come along, use the power of self-direction to your tax advantage.  Remember, neither NuView IRA nor NuView Trust provide investment advice nor recommends individual investments.  A self-directed IRA account requires the account holder to select and provide all investment direction to Nuview Trust, who serves as the custodian of the IRA.

Glen Mather, CEO