Real estate IRA investments are becoming increasingly popular. The leading IRA investments have always been stocks, mutual funds (which rely on the stock market) and certificates of deposit, but because of the struggling economy, new ideas are needed, particularly if you want to grow your retirement wealth quickly. And, who doesn’t?
There is little risk with real estate IRA investments, if you make the right deals. Real estate values are struggling right now, but that could be a good thing, if you are buying.
Stocks are riskier than ever. If you listen to the news, you will see that everything is working against the market. Giant companies are reporting little or no growth. Personal incomes are down. People are not spending money. They simply can’t afford to. It all trickles down, or up, as the case may be. Brokers always say to be patient. The market will bounce back, but there are no guarantees. Therefore, Quest IRA, Inc. is the leading provider of IRA administration and they give guidance on real estate investment. They are experts when it comes to real estate investment.
Diversification is the real key to constant growth in your personal portfolios. Mutual funds, one of the other leading IRA investments, are truly just a group of stocks, typically from a single industry type. Brokers suggest mutual funds as a way to diversify, but these funds carry the same risks that regular stocks do.
While, there is no real risk associated with a bank certificate of deposit (they are guaranteed by the federal government), the returns are low. If you buy a CD valued at $25,000 with a 3.5% interest rate, your return would be $875 per year. That’s not enough to retire and with inflation, you might even be losing money.
With real estate investments, it is possible to see huge returns in a relatively short period of time. You’ve probably seen infomercials with “everyday people” making hundreds or thousands of dollars on a single deal.
It might sound too good to be true and the disclaimers warn that the results are not typical. But the truth is millions of dollars can be made in the real estate market. Some finance experts call the market “largely unexploited” when it comes to retirement accounts.
If you want to “exploit” this niche, you need a few things; money, time and knowledge are some of them. But, something you must have is a self-directed IRA with a brokerage that offers their clients the option of investing in real estate.
The government allows it, but many brokerages only offer the leading IRA investments. It may take a little searching to find the right broker, but it’s worth the effort. Just make sure that the trustees have some experience with the relevant tax laws.
At some point in the near future, real estate IRA investments will probably become the leading investment choice. But, if you start now, you can beat the crowds and enjoy a secure retirement. If you don’t include self-directed IRA’s as part of your portfolio, you’re missing out on a huge opportunity to grow your investment, even in a down economy.