Posts Tagged ‘self directed ira’

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Is Now a Good Time to Invest in Silver?

Saturday, July 30th, 2011

The trend is that when the value of the dollar goes up, the value of precious metals goes down. The opposite is also true, when the dollar value goes down, the value of precious metals goes up. While this trend is not a certainty, the price of gold and silver is over 70% correlated to the U.S. dollar.

As industrial uses for silver continue to rise, demand for silver will continue. Roughly 45% of all silver mined is now used for industrial purposes. As more countries become modernized around the world, demand for silver will increase.

Silver has medical uses as well. Silver is used as a bactericide, and nearly every hospital uses silver sulfadiazine for preventing infections. Medical devices such as catheters and stethoscopes also use silver.

The bottom line is that silver is scarcer than gold, and is more widely used. Gold is hoarded, which means supplies continue to increase. Silver is used, which means supplies will continue in high demand.

In 1900 the estimate was that there was 12 billion ounces of silver worldwide. By 1990 that dropped to 2.2 billion ounces. In 2007 the supply was down to 300 million ounces. Some expect us to run out of silver in 10 years, which would have a huge impact on the world’s economy. Do you think it would be wise to invest in silver?

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Why You Might Buy Silver Instead of Gold

Wednesday, July 27th, 2011

Diversify, diversify, diversify. This can be true not only as it applies to types of investments, but can be true when investing in precious metals as well. If you own more than one type of precious metal, you will be better able to ride out the normal ups and downs of the financial market.

Lorimer Wilson, Editor of FinancialArticleSummariesToday.com and munKnee.com listed 29 reasons for owning silver over gold, and he said his list is still growing. While we won’t go into all 29 of his reasons, we’ll mention a few of them here to whet your appetite. (Read his complete list here.) Top of the list was that the silver battle is much easier to win due to its smaller market size.

Central banks have no physical silver to use to manipulate the market. Most silver mined is consumed in industrial uses while the amount of above ground gold grows each year. Silver is in higher demand for day to day life due to its many industrial uses.

Due to the lower cost of silver, the average person is better able to afford it in greater quantities as a means of investment than he could gold. Silver has also been in a supply deficit for over 50 years, making the demand higher. Few investors have physical silver in their possession.

Due to the value of gold, there have been more counterfeiting issues relating to gold than there have been for silver coinage. Gold confiscation laws are still on the books in the US, but there are currently no silver confiscation laws. If any of these reasons appeal to you, then you may want to consider adding silver to your portfolio to help diversify and protect your assets.

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Diversify With Gold

Saturday, July 23rd, 2011

The old adage “Don’t keep your eggs all in one basket” is still wise counsel for any investor. Those who only had stocks and bonds investments suffered the greatest losses when the market crashed. Those who had diversified and included gold savings in their portfolio fared better.

There are many ways to diversify your portfolio. One way could be adding real estate investments to your portfolio. Another way is by adding gold investments, such as having a gold IRA.

Gold has been considered a valuable investment for thousands of years. In more recent years, gold has performed well as an investment during times of high inflation. It is also considered a great investment during troubled times and economic uncertainty.

During the troubled times from September 2008 through January 2009, the US Mint sold 816,500 American Eagle gold coins. This was over three times as many as sold the previous year. There were times when the physical supply of gold coins couldn’t keep up with the demand.

Gold will retain its luster as long as the economy is weak. If inflation returns due to all the dollars pumped into it by the government, gold will remain a good hedge. Since no one knows the future, diversification of assets is always the best bet.

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How Real Estate Investing Works

Thursday, July 7th, 2011

How does investing in real estate work? Well, quite frankly, sometimes it works better than others. If you want real estate investments to work for you, first you need to determine what results you are looking for. You could have either a short term or a long term strategy; or a combination of the two.

If you are working toward a short term investment, you will be turning or flipping property quickly. For this to succeed, you must be able to buy at a low price and turn around and sell it at a higher price. If you are familiar with real estate markets, you can make some quick cash this way.

Longer term investing can create quite a bit of wealth. This involves you buying and holding onto property. The property is usually rented out to a tenant, or leased with an option to buy.

When starting out, the payments received for rent will often cover the financing cost of owning the home. Once the home is paid for, the rent collected is pure income. Using real estate as a retirement investment option is possible for those with a self directed IRA.

As with any investment, investing in real estate also carries some risk. The hoped for scenario to buy at a low price and sell for a much higher one doesn’t always pan out during market crashes. Still, regardless of the current pricing of real estate, property will always carry some value no matter how low the market goes, so in that regard it can be a more secure investment than many other options.

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IRA Investment Options for Your Self Directed IRA

Tuesday, June 28th, 2011

There is a growing movement of people using their 401K or Self Directed IRA funds to buy real estate. They believe that using their funds for real estate investments is a great way to diversify. Real estate investing is only one option of many available to those seeking investments beyond the normal Wall Street stocks and bonds.

Purchasing real estate when the prices are low can be a great strategy. The rent from the property goes right back into your retirement account, tax-free in most cases.  When you do eventually sell the property, the gain on the sale can also be tax free – depending on how your account is set up.

Since most IRA custodians do not offer real estate as an option, many people remain unaware that they can use their retirement’s funds in this manner. There are actually many options available when investing your retirement funds. The restrictions are that you can’t invest in life insurance and collectibles.

With the volatility of the stock market, many investors are looking for other ways to invest their retirement savings. Some of the more common assets invested in are real estate, private placement, precious metals and notes. If you don’t have your IRA set up so you can decide where the investments are made, that is the first step you must take.

If your current IRA custodian doesn’t handle the types of investments you want to make, you will need to look around to find one that does. Once your account is set up, you can fund it with a transfer from your old IRA or a rollover, or by adding regular contributions. After all that, you can decide what you want to invest in and instruct your custodian to facilitate that investment on behalf of your retirement fund.

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Investment Tips

Friday, June 24th, 2011

One of the top tips for any investment portfolio is to make sure you diversify. The old saying “Don’t put all your eggs in the same basket” prevented cracking all your eggs, and helps you not loose all your money. Having a variety of investments will help modify the ups and downs of any economic investments.

Before making any investment, do your homework and study it out. Set realistic goals and limits for your investing. Don’t invest in risky ventures unless you can afford to lose the money.

Instead of expecting to get rich quick, invest for the long term and don’t change your investments too often. Avoid acting on impulse; take the time to think your decisions through.  Don’t be greedy; giving to charities helps keep balance in your life.

When looking at investments, go for a good value. Remember that tax planning is important, so check out how the investment will affect your taxable income. Don’t be afraid to get good professional help.

These investment tips will help you manage your self directed IRA or any other investments you have. These common sense tips have stood the test of time. Beware of those advocating anything that seems too good to be true – it probably is.

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Using a Self Directed IRA to Invest in Other Great Options For Your Future

Thursday, June 16th, 2011

Investing in real estate is not a new concept. People have been investing in real estate for years, making it a popular investment option. Just like many investment markets, there are ups and downs involved, but real estate still promises great opportunities for investors.

One opportunity is investing in a self directed IRA. Real estate is an option with self directed IRAs. The real estate investment goes directly towards the retirement account, so you can save it exclusively for your future.

In order to invest in real estate, however, it is important to find the right company and custodian to close the deal. There are a lot of rules and regulations that are involved with any IRA. However, real estate investing is considered an unconventional investment, and is a little more complicated than the usual stocks and bonds option.

Many custodians offer varying plans that work according to your needs. Self directed IRAs allow the account holder to have the final say in how much control they have on the investment options. Good custodians have options for people who are unfamiliar with IRAs and want things to be taken care of mostly by the custodian, but also have options for clients who want full control and management of the investment.

Real estate IRAs can be very beneficial for the future. There are a lot of great options with a non-conventional method of investment, such as diversifying your portfolio. There are also great options, such as purchasing a property and renting it out and using the rent money directly for your retirement. That money cannot be touched, at least with out severe penalties. This allows you to save up for your future in a safe and unique way.

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IRAs and Radioactive Spiders

Friday, June 10th, 2011

A self directed IRA or 401k offers you, the investor, a much greater level of control over your investment. When you make traditional investments, you basically give your money to the custodian, and hope they invest it wisely. The problem is, this limits your possibilities. With a self directed investment, you get to choose where the custodian invests your money, with varying levels of control, depending on how much risk your comfortable with and how much time you want to put into it.

There is a flip side of this coin though. Just like Uncle Ben told Peter Parker, with great power comes great responsibility. The risk/return trade off applies not only to the investments themselves, but also to the control you choose. If you want greater personal control over your IRA, you also assume the risk of the IRA performing less than phenomenally, and you have to be committed to maintaining your account. Spiderman would never have defeated Venom if he went after him half hearted!

IRA custodians are trained to follow the trends in the market and make wise decisions with your money. If you want to leave it all up to them, a self directed IRA may not be right for you. Maybe you should just stick to photography. By all means, however, find a custodian you can trust.

But if you’re ready to step up, strap on your webslingers, and take control of your financial situation, now is the time to switch to a self directed IRA or 401k. Three levels are available to fit your current heroic nature:

  1. The petty criminal level- This plan offers minimum control and convenience. You open a self directed IRA account, then select your investment and work through your custodian. If you’re just getting your feet wet and finding if you’re really into fighting crime, this is likely the way to go.
  2. The minor villain – For medium control and convenience, you open your account, then a separate IRA Trust that your IRA will invest in, with the option of a connected checkbook account. You will be the investment manager, with administrative power and control. Like facing the Scorpion or Lizard, this is a much greater commitment.
    Learn more about the iTrust
  3. The arch-nemesis – Maximum control and convenience comes from the Self Directed IRA LLC. After opening the IRA, an LLC is setup in which you invest. As the administrator of the LLC and IRA account owner, you will be allowed the necessary powers and control over management of the IRA’s assets. You can buy and sell assets at your own discretion. This is not for the feint of heart! Now your going up against the Kingpin himself! If you are committed though, you can do a great deal with this plan.
    Learn more about the IRA LLC

For more information, feel free to contact your friendly neighborhood consultant.

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Consider Real Estate For Your Future Retirement Investment

Friday, June 10th, 2011

Don’t just stick to the same investment choices that your business associates, neighbors, family members and friends’ use. Think outside the box and find some great investment opportunities for your future. One great idea is to invest in a real estate IRA.

There are a lot of options with real estate investing. You can invest in houses, buildings, condos, apartment complexes, commercial properties, raw land, and even mortgage notes if you want to. With these many options you can choose something you feel comfortable with, as well as expand your portfolio.

Each choice offers your own unique investment option. For example, if renting out a property that you bought with an IRA investment in mind, the rent money will go towards your IRA. This can be a great opportunity for investing for your future.

Self directed IRAs allow you to make your own decisions with your investments. If you want, you can have a very hands-on experience with your IRA. If you would rather rely on someone else to take over your investments, self directed IRAs still give you that opportunity as well.

One thing that needs to be pointed out, however, is that real estate IRA investing is different than typical investing. The real estate cannot be used for personal use anymore. You couldn’t purchase a home and live in it, for example, or a time-share and go on vacation there for a week every year. A lot of people see the benefit of having a real estate investment, but don’t always realize that the investment is literally a retirement investment. Be careful to remember this when considering your options.

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Top Things to Remember When Investing in a Self Directed IRA

Sunday, May 29th, 2011

When looking for an investment opportunity, a self directed IRA is a wonderful option. Self directed IRAs allow you to choose a lot of good investment options for your future. There are, however, some things to consider when looking in to an IRA.

A great option for self directed IRAs is that you can invest in real estate. This is a wonderful opportunity for an investor. Real estate is a great way to diversify an investment portfolio and generate investment income.

Look for good investment opportunities. One thing to look for is potential for growth. Instead of just putting money in to an investment, look in to options that allow you to gain more than you put in.

Know your options. Self directed IRAs allow you to invest in more things than the typical investor can. See what options that are available for you, whether that is with real estate, gold and silver, or partnerships.

Be careful of fees and prohibited transactions. Since there are a lot of options with self directed IRAs, there are also a lot of rules and regulations. Be sure you choose a custodian who is familiar with self directed IRA investments so you don’t run in to any prohibited transactions and huge fees and penalties.

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