Blanco County News
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Investing For Retirement
Why You Should Consider Self Directed Roth IRA Investments
Wednesday, November 5, 2008 • Posted November 4, 2008

Self directed Roth IRA investments have the potential to earn more. For many people, it's "put it in the bank and leave it alone." But since 1996 when the fund was established, some investors have taken advantage of the fully self-directed approach.

Some of their accounts have values in the millions of dollars now. Those that counted on the banking industry or the stock market have accounts valued at no more than $44 to $73 thousand.

With the right self directed Roth IRA investments, it's possible to grow $20,000 into a million is as little as three years. Others have done it. Why not you?

Yeah, I know it almost sounds like a get-rich quick scheme, but there is no scheme involved. It's all a matter of making the right choices... self-directing is the first step. Choosing a custodian that gives you complete control and offers all of the legal investment options is step 2.

Comparison shopping the fees that custodians charge is also important. An annual fee is acceptable and expected. Per-transaction charges add up quickly. Companies like Scott and Ameritrade may offer some free trades, but they will eventually start to charge you for each investment that you make.

In addition, they only offer opportunities found in the stock market.

If you've been following the news, you know that many people are turning to self directed Roth IRA investments because they are tired of losing their money. From 2001-2007, the average account invested in stocks and mutual funds grew by about 9% per year. Between 2007 and 2008, it is estimated that those accounts lost an average of 20%. So in one year, nearly 3 years of growth were erased.

Now I'm not saying you shouldn't invest in stocks. I'm saying that you need to consider all of your options and fully diversify.

Diversification has come to mean investing in a variety of different mutual funds, but that's not true diversification. In order to be fully diversified, you need to consider all of the markets, and ESPECIALLY the housing market.

Everyone needs a place to live... and the population is not shrinking. And even if high priced houses are not selling right now and their values are declining, you have to look at the overall picture.

The investor that grew $20,000 into a million in three years did it with self directed Roth IRA investments in the real estate market. He started by flipping vacant lots. His profits were sometimes as high as $40,000 per deal. He continued by offering to provide mortgages for interested buyers. For 15-30 years, his account will continue to accept mortgage payments from several people with interest rates around 8%. So, portions of his funds are earning a 24% return.

The key is to find the market that is buying or renting and provide the housing that they need. Get some more education and turn your self directed Roth IRA investments into real money makers.

You might even get to retire earlier than you thought possible.

Ray Stockwell is a real estate investor who enjoys making money by investing in projects that help people and their communities, all without capital gains taxes. Visit his web site at http://www.SociallyResponsibleProfits.com

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