Provident Trust Group has been mentioned in an article in The Wall Street Journal, entitled “IRAs Get Sexier,” by Laura Saunders. As the title indicates, the article is intended to inform readers about the opportunity to put unusual, exotic assets in an IRA. Indeed, the subtitle of the article reads: “Disillusioned With Returns on Conventional Investments, IRA Owners Are Turning to Private Equity, Condominiums, Farmland and Other Alternatives.”
The article begins by noting how Presidential candidate Mitt Romney has received a fair amount of attention on account of his holding as much as $100 million in his IRA. What is not as generally known, the author explains, is that Romney’s account is “chockablock with complex private partnerships rather than the traditional stocks, bonds and mutual funds that make up most IRAs.” However, the author remarks that after “a decade of market turmoil, Mr. Romney isn’t the only one wise to the fact that IRA rules allow enormous latitude in choosing investments.”
Further to this point, the author comments that, based on interviews with executives at several firms, “Romney’s portfolio seems almost tame compared with the exotic assets currently held in IRAs by some investors.” The article identifies some of these exotic assets as: precious-metal bullion, natural-gas wells, cattle, hedge funds, fishing rights, and untraded securities.
The author of the article does offer the reminder that most individuals might not possess the investment expertise of Mitt Romney. Nonetheless, she provides that: “For shrewd investors, alternative-asset IRAs can be a boon, allowing them to diversify their portfolios far beyond everyday holdings while deferring income taxes for years.”