There are numerous options for investing from within an IRA. You may only be aware of a few of them and depending on the brokerage or the bank that you use, only a few may be available to you.
Banks typically suggest certificates of deposit. That's the best option for “them", but for you there are better choices.
Most brokers offer stock market investing from within an IRA. But, have your read the financial section of your newspaper lately. Stocks are tanking across the board. Diversification is always the key to a healthy portfolio, but right now, it really doesn't make much difference if you invest in a mutual fund or a company stock, everyone is suffering.
Bonds are another common choice for investing from within an IRA, but they are not a high yield choice. In most cases, the value has stayed about the same over the last ten years. If estimates are accurate, the thirty-year yield will actually be a loss.
A lot of people think that the options for investing from within an IRA are by law, severely limited. That's actually not the case. There are only a few types of investments that are prohibited by law. Most prohibitions are determined by the brokerage.
With a self-directed retirement account you can invest in practically anything you can think of. The only restrictions imposed refer items that are hard to liquidate, such as antiques and collectibles, and those investments, which may be deemed high risk, such as foreign investments. Trading foreign currency is allowable investing from with an IRA, but buying foreign land is not.
Since we mentioned land, now might be a good time to mention real estate. Domestic real estate investing from within an IRA is allowable and has become popular for a number of reasons.
First, of course, is the diversification that it permits. Often when stocks are down, so are real estate prices, but where you could lose your entire investment in the stock market, there is no way that you can lose everything in real estate.
If you hold a piece of property in your account for 30 years, one can only imagine how much the value will increase. In the last thirty years, property values have skyrocketed across the country.
If it is a rental property, then for thirty years, your account is collecting the monthly rent. Maintenance payments are made through the account. The initial purchase is made with account funds. If you choose only cash deals, rather than taking out a mortgage, then you are collecting, not paying, interest. With interest and increased value as well as income rental, you can see how real estate investing within an IRA is attractive.
The other big advantage of property investing from within an IRA is the tax savings. Experienced investors are using their retirement accounts for buying, rehabbing and reselling, so that their profits are not subject to capital gains taxes.
If you are inexperienced, you may want to get a little help before you set out on your own. But, if you learn to make the right deals, this type of investing from within an IRA can grow your account quickly and increase your retirement wealth.
To learn turn-key, hands-free investing from within an IRA, contact us today!
Paul Clinton: Dedicated to researching ways to invest in real estate while minimizing the risk and maximizing return on investment. For more information about Real Estate IRA Investments, please click on the following link: http://www.IRA-and-Private-Money-Investing.com