Have you considered all of you choices for self investing IRA funds? Did you know that investing 401k money in real estate is a legal option? Here’s a brief look at some of your investment choices and a little information about a unique option that I ran across recently. Hopefully, you will find this information as interesting as I did.
Tip #1-Money Markets, Certificates of Deposit and T-bills
Currently, the maximum earning potential for these investments is around 4{a16d06abe49b7cb280a391e2908a1c67db5c20e235c835a9ae172b47b18e1709}. The rate of inflation in July of this year was 5.6{a16d06abe49b7cb280a391e2908a1c67db5c20e235c835a9ae172b47b18e1709}. The inflation rate has not gone under 3.98, all year long. So, basically, while we have our money sitting in some bank or the US treasury, it isn’t earning anything.
By the time we retire, our initial investment will have less spending power. So, all that we have managed to do is barely keep up with inflation. In my opinion, there are better choices for self investing IRA funds for all account types in the real estate market. Even investing 401k money in real estate is a good alternative.
Tip# 2-Self Investing IRA Funds in the Stock Market or Mutual Funds
What can I say about the stock market, today? It is extremely volatile. This week alone, the Dow Jones Industrial average has plunged over 700 points and rebounded by several hundred points, the very next day. For many of us, that’s just too nerve wracking.
Self investing IRA funds can be profitable, without keeping your nerves on edge all the time. I have found an investment opportunity that “guarantees” a return on the investment. The only investing guarantees are in treasury bills and those protected by the FDIC. How can someone guarantee a better return?
There is a large virtually untapped market in this country. You can take advantage of it by investing 401k money in real estate, using a traditional account, a Roth account, your own personal funds or even your good credit.
I cannot fully explain the market to you here, but this is a brief description of what market I am speaking of. Over the past two decades, builders focused on larger, more expensive homes that the average working guy cannot afford. This means that there is a huge potential market for affordable housing. In some areas, people have been waiting for 15 years to buy a home. You can probably imagine the earning potential in a market like that.
Tip #3-What’s best? Investing 401k Money in Real Estate or Choosing a Traditional Account?
In order to take advantage of investing 401k money in real estate, if you are an employee, you must get your employer involved or transfer the funds to a traditional account that offers self-directed investments. If you are self-employed, you may only need to change your custodian.
So, actually, either choice is fine. You just may need a little bit of education, before you begin self investing IRA funds. Some of us experienced investors are willing to share our knowledge and give you a hand.
