With the way that the interest rates are in many of the safe invests out there you might as well just stuff money into a pillow case and hold it on your own until retirement. Most people aren’t earning much off of interest at all and retirement accounts just aren’t working for them. If you’re tired of seeing little growth in your retirement account year after year learn what you can do to change that today.
The problem with traditional retirement accounts is that interest rates are at very low rates currently. That means most safe accounts are earning minuscule rates of returns for investors. By relying on these rates it can be hard to even keep up with inflation and retirement accounts certainly aren’t growing as quickly as they need to be to provide for a comfortable retirement. If you’re sick of these rates self-directed IRAs could help provide a solution for you.
A self-directed IRA is like a traditional account in that it is tax exempt, but a whole array of new investments are opened up to you when you go with this type of account. Instead of investing in things like certificates of deposit or even mutual funds, you could invest in tax liens, real estate, new businesses or even make personal loans to people, that you know.
Each of these investment opportunities have the potential to pay a lot more than a simple IRA could ever hope to. Now that you know how you can bolster your retirement account you need to figure out which investments to put your money in and how to avoid being penalized along the way.
For those of you who are familiar with one type of investment already you should stick to what you know. With the exception of collectibles and art you can become involved in just about any type of investment that you can think of. That means you can take your expertise and use it to bulk up your retirement fund as well if you want to. If you don’t know what to invest in it may be worth your time and your money to get professional advice from an expert who can give you some ideas.
As you are setting up different investments you are going to need the help of a good lawyer to make sure you aren’t breaking any of the rules. For instance, if you are buying a house to rent out to tenants you would want a lawyer to draw up the contract for you so it meets regulations and it is legally binding.
Higher interest rates aren’t that difficult to attain as long as you are making use of investments that aren’t too risky. Lots of research should be performed before jumping into any investment and you should never rely on the advice given to you by a custodian who isn’t obligated to help you find a good investment.
