In short, houses are good IRA investments. If you look at the growth in IRA investments over the last year, there was very little.
Only the smartest investors made any money. Most lost.
This is how you can avoid losing money and your ability to withdraw.
historic earnings
Some people think that bank certificates of deposit and treasury notes are good IRA investments simply because they are safe. But historical growth for IRA investments of this type is less than 5% per year. Right now, CDs are earning less than 4%. Treasury notes and government bonds are less than 2%. Historically, advisors counted on an inflation rate of 3%. Now, we’re looking at 5% or more over the next twenty years.
The inflation rate is relevant, due to the purchasing power that your money has.
As a simple example, if you need $100,000 per year to live on right now, you will need $200,000 per year in 20 years. The only way to live comfortably for 20 years after retirement is to have a multi-million dollar account at age 60.
own investment
The 5% of account holders who have chosen to self-direct have seen continued growth in IRA investments over the years. By staying away from the stock market, for the most part, they didn’t lose the 20% that many would-be retirees lost over the past year.
Most people think that stocks are good investments for IRAs because the return on your investment can be higher. But, the returns weren’t really that high. Over the past 20 years, stock market investors have earned an average of 8% per year.
What to look for in a custodian
A custodian cannot guarantee the growth of IRA investments. They can tell you about what others have done and provide you with educational resources.
But, they cannot give you investment advice.
At first, I said that houses are good investments for IRAs, and that may have surprised you. Many people are unaware of the option, because most custodians (self-directed or not) do not offer the option. So you’ll need to “shop around” to find a few that do, and then compare the rates they charge. You’re looking for a reasonable annual fee and no “per transaction” fees.
Where to get help
You will need a variety of professionals to help you, including a lawyer and an accountant. But, when it comes to investment advice, ask an experienced investor, like me. My advice is free.
If you learn from my mistakes, you will be more successful than me. I can tell you how to see continued growth in IRA investments. Some options are even guaranteed.
In summary, there is a portion of the real estate market that is doing very well, despite the economic turmoil in the country.
If you realize, there are some investors who are not concerned with what happens in the stock market or in the banking industry.
That’s because they know affordable homes are good IRA investments and that’s what they stick with.