You must diversify your investment portfolio to lessen your risk, we all know that. Did you know though, that you can invest in real estate using your IRA? Within certain guidelines and following certain rules, the IRS allows you to use retirement money for real estate investing. This is can be condos, office buildings or even raw land. Use your IRA funds to buy the property then turn around and sell it to a developer for a profit! You’ll be using money that is yours without touching your household income!
You may have some money in stocks, bonds and even a savings account already. However the interest earned is very small unless you have a bulk of money in those for at least 15 years or more. However, raw land investing can increase your retirement funds quicker and maybe allow you to retire sooner than originally planned! Stocks will go up and down, bonds can lose their value and savings accounts have slow growth. There is no more land being made though! You will be investing in something that is limited!
If you aren’t familiar with raw land investment it is when you buy land for the purpose of developing then resell for profit. You may want to make it a long-term investment or a quick turn-around. Raw land can increase as much as 300% on the average. Financial advisors and fund managers don’t offer raw land investment even though they are a favorite of the very rich because they won’t make a commission on that purchase.
In fact, banks, mutual funds and insurance companies prefer to be the middle man by only offering IRA accounts that are lucrative for them such as stocks, bonds and other ‘paper financial’ investments. Therefore, you are on your own when it comes to investing in real estate and using your IRA funds to do so.
So if your retirement is coming up soon or still a few years out and the government’s recent announcement that the Social Security plan is in the red, won’t it be a good feeling to know you have your financial future secured yourself?