Recent news reports make IRA real estate investments even more attractive. It has never been a top IRA investment, although it can be a very profitable option, but things can change as many would-be retirees have been affected by the stock market.
At 62, an Iowa couple hopes to work another 10 years before they can retire. If they don’t change their investment options, they may not be able to retire at that time. People cite various reasons for sticking with more traditional investments. If one of these is your reason, maybe it can help you find a solution.
too much risk
While investing in a real estate IRA is not risk free, there are ways to reduce your risk. Education is one of the keys to success. Investigating all your options is another.
You should also consider that risk-free investments do not generate high income. You will never find a CD rate higher than 5%. The yield on government bonds normally does not exceed 2%. Even with major IRA investments, your average return will not exceed 9%.
Unlimited Earning Potential
With IRA real estate investments, your income potential is unlimited. You can easily get 30% return on your investment every year. There is a new management team that “guarantees” double the rate of return from previous years. Of course, if you’ve invested heavily in the stock market, you may have had a negative rate of return last year and double that is still nothing. But, that’s just one more reason why you need investment alternatives.
There is no time
One of the reasons that the main IRA investments have typically been mutual funds is because you can put your money in these vehicles and just “wait.” Of course, your waiting is not always rewarded.
It is true that investing in the housing market usually takes a long time. You have to find the houses, probably fix them up, advertise them, and wait for a buyer. You may not have time for all of that. But what if there was another option?
What if you could find a team that offered “hands-off” real estate IRA investments? Would that fix your timing problem?
I don’t know enough about the housing market
This is the typical reason why people stick with traditional IRA lead investments. They don’t know much about investing, so they let their custodian make decisions for them.
It has always been a risky choice. You never know if they are “really” suggesting major investments in IRAs. They often have ulterior motives. It could be a pet project or they could earn a commission selling you the shares. A truly self-directed custodian lets you call all the shots, and that’s the way it should be.
There are experienced investors who are willing to teach you the ins and outs of the market. It may not be as difficult as you think.
Making IRA real estate investments is the right choice for your future. You just need a little help.
