Sunday, May 6, 2012

3 Ways To Capitalize On Roth Ira Investments

Most asset class's brokers and bankers invest your funds in like stocks, bonds; mutual funds are getting crushed with no immediate end in sight. The government is bailing out banks, broking houses, insurers and mutual funds with handfuls of cash to stop an even worse scenario happening. So what's the answer? You basically have two choices, do nothing and hope for the best, or take some positive action and look for better returns from other asset class investments.

1. Roll your traditional Roth IRA to a self directed Roth IRA

Why bother doing this? Simply, because you can invest in more asset classes and have more control over investment opportunities. An employee wants to earn as big a wage as possible doing a decent days work, he is not an investment guru, and hasn't time to be running around looking after investments, so why would he take this action? Again the answer is simple, because he can use specialized people in organizations structured to look after all the issues using a turnkey approach.

2. Get a better interest rate and ROI

Under normal circumstances investors could expect to receive 7 to 8% return on their IRA retirement plan. However, things aren't normal at the moment and probably won't be for a long time to come. Getting these kinds of returns is highly unlikely at the moment; in fact many are turning to cash for safety with even lower interest rate returns. There are real estate investment opportunities at the moment offering a far superior return on investment. We all know real estate hasn't been immune from worldwide financial problems. However, there are some great turn key investments available where you can invest self directed Roth IRA money to get a better ROI.

3. Use Roth IRA tax incentive to gain greater ROI on capital to compound profits

Working a normal 9 to 5 job doesn't offer regular employees much opportunity to create wealth. Retirement saving plans are great incentives to encourage people to be self financed retirees and not rely on government pensions. But, if you want to be financially independent in retirement you may have to broaden your investment scope. One successful way to create wealth faster is to grow your original capital with better profits from greater ROI. Then use this money to reinvest and try to do the same thing again, each time you do this the capital grows. The self directed Roth IRA tax incentives enable you to speed up increasing your wealth in the account by not having to pay tax on the profits when the funds are withdrawn provided you abide by the IRS rules.

In conclusion, the financial environment is difficult today compared to even twelve months ago; just about every asset class is giving poor results. A Roth IRA investment in real estate may be a viable option worth considering to help grow your retirement income. Seek advice from a trusted financial advisor, and then find a company that specializes in proven turnkey real estate solutions that can give you a better return on your money invested.

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