You have a Roth IRA and you are thinking very recently about the return on your IRA when times get difficult, like now. One of the best investments for any IRA, including a Roth IRA, is in real estate.
Believe it or not Roth IRA investment in real estate is still the best investment you can make right now in 2008, when the economy is horrible and the real estate market is in turbulence.
But surely you would not do a Roth IRA real estate investment in the current market? The real estate market is breaking down. Why should you invest your pension plan on a real estate market that looks a bit like Titanic, going down.
Real estate as an investment lives in a good year 2008, whether you have a Roth IRA or any kind of employer retirement plan.
Of course, you always need to review your plan and see what investments are allowed. With many plans, you have a limited or non existent right to invest your own pension funds, or you can only invest in a limited number of investments.
For example, many IRAs are with custodians who only allow traditional stocks and bonds and CDs as investments, and usually try to lead your pension funds to investments in their own products.
So, the first thing you need to do before investigating your pension plan is to make sure you invest in real estate yourself. So you may need to make a transition if you have said, a traditional IRA or maybe an employer sponsored retirement plan or even a 401 k. Move to a fund that allows you to invest in real estate, and you are on your way to preparing your pension.
Obviously, you should get solid financial advice from your financial adviser before making any transition to make sure you do it right, and there are different Roth IRA websites you can use to educate you on rollovers and Roth IRA rules.
If you have your own directed Roth IRA right now you should be able to invest in real estate now, but contact your financial adviser first.
Then back to Roth IRA investment in real estate 2008. Why should you?
Firstly, real estate investment has estimated, about 80 percent of the realm in the US today. Real estate offers a better long term opportunity for a good return, both from rental yields and capital gains, than any other form of investment. Real estate allows you to borrow larger amounts more securely, and if you invest through a Roth IRA, you can also invest tax free because of the significant tax benefits for formal pension funds such as IRA and 401 k s. Even at a marginal tax rate there are large tax advantages to investing in retirement through a formal pension fund.
And real estate offers a good return even in 2008. Since the real estate market generally decreases, there is a gap in the real estate market that still offers great opportunities for an excellent return from an investment, income tax free.
But be warned, if you are not an extremely experienced investor, you are likely to be burned. Professional real estate investors know where to look and how to buy to make significant profits in such a market, but if youre not a professional real estate investor, youre playing with fire.
A professional real estate investment company strikes some sunny home runs right now. Invest in simple middle class houses and renovate every home, increase value to the neighborhood by building parks and playgrounds and making housing attractive to potential tenants and buyers. This company creates capital gains. Investors, including Roth IRA investors, do not hedge real estate real estate of 15 percent 20 percent, guaranteed returns and support for a respected, solidly listed US public company that has an envied record in real estate.
So if you are wondering about your retirement, and are concerned about current economic conditions, there are alternatives. Roth IRA investment in real estate is a solid, long term stable investment strategy, even under current economic conditions.
But if you are not an experienced professional real estate investor, you do not start making any Roth IRA investment in real estate itself. Let the professionals who know how to create value in the current market do it for you.
Do not catch your fingers. Let professionals make your property invest for you.