Are you sick and tired of earning minimal returns on your retirement investments? If you want to maximize your returns and have more control over what happens to your investment account, you should consider getting a self-investment IRA. Here are 5 reasons why you should consider making the switch if you haven’t already.
1. It is not possible to invest 401k money in real estate because your employer will choose investments that will ultimately benefit the company and not you, the account holder. When you roll over to a self-directed IRA, you have a much broader range of options, including real estate, which is an untapped investment that’s very stable.
2. When you have a self-invested IRA, you don’t have to wait for your quarterly reports to come in to find out what’s going on in your account. You make the decisions about your account transactions and investments. However, that does not mean that you are solely responsible for everything that happens to your account. In fact, the trustee or custodian of your account will do virtually all of the work for you. All you have to do is express your wishes and your trustee will act accordingly.
3. You may think it is possible to invest 401k money in real estate since there are self-directed 401k plans. It may seem the same, but your options are actually much more limited with a self-directed 401k plan. For example, your employer may only allow a portion of the account to be included in the self-directed plan and the rest of the account to be included in the traditional plan. Plus, a 401k plan will always be connected to your employer, no matter what type it is, so any time your employer makes unfavorable changes that affect you, you’ll be forced to bite the bullet.
4. Self-invested IRAs give higher returns. Since you have a greater number of investment options and there is no bank or employer to pocket most of the profits or charge exorbitant fees, you can earn more money. Just think… with a self-directed IRA you can double or even triple your earnings!
5. It is not possible to invest 401k money in real estate and it is difficult to make other investments of your choice under a 401k plan. On the other hand, with a self-directed IRA you can invest in real estate with companies that use a portion of their profits to build affordable housing for the poor and perform other noble works. Socially responsible investing creates a win-win situation.
Now that you know why owning a self-investment IRA is advantageous, why not give it a try? Start looking at options on how to roll over your 401k or traditional IRA to a self-directed account so you can have more flexibility, control, and performance. In these unstable economic times, investing in stocks is dangerous. Your best bet is to take control of your account and invest in real estate, which is stable and lucrative.