Working with a personal financial consultant is a excellent idea in order to make sure that your financial goals, both short-term and long-term, are ultimately achievable. Their expertise, matched with a tailored advice are crucial to making smart money moves. Though many people know they should meet with their financial planner on a regular basis, many do not know the types of questions they should ask. One good area to always discuss with your planner is the type of retirement investing you are engaging in. To learn more about some questions to discuss regarding your IRA, keep reading.
1) What is an IRA? First, it is important to make sure you take advantage of your financial planners knowledge and learn the basics of retirement investing. IRAs are a special kind of retirement account that gives you tax breaks for investing in your retirement. They are one of the easiest ways to get rewarded for saving for your future. Because it is such a good option, more than 45 million households in the United States have one. Though a traditional IRA may be right for you, ask about self-directed IRAs and IRA real estate loans to learn about your options.
2) Can I self-direct my IRA? Self-directed IRAs have grown in popularity over the last several years. Though they still only make up 2% of the $4.2 trillion dollar IRA market, they are a great option for many investors. Many are used for self directed IRA real estate loans, but they are flexible enough to be used for other things as well. Just like with traditional IRAs, self-directed IRAs come with a tax break on contributions which can save major money in the long run.
3) What is an IRA loan? Many people do not realize that an IRA can do more than simply be an account that you put money into and let someone else manage. If your financial planner thinks its a smart move for you, looking into an IRA loan with a non-recourse lender may be a good choice to grow your investment.
4) Would IRA real estate loans work for me? Because real estate can be a great investment, it is an attractive financial choice for many people. Getting the capital necessary for making the initial investment can be difficult, however. This is one way that IRA real estate loans can work for you. There are lots of rules about how IRAs and real estate can mix however, so make sure you have a firm grasp on the legalities before moving in this direction. It’s worth investigating because if a buyer can put 30%-40% down, IRA borrowers can get loans on a variety of properties with the only requirement being that it results in money earned for the borrower.
For people wanting to get the most they can out of their retirement investing, it is important to learn about less traditional ways of investing that can have major yields. Understanding your options, and knowing what is a good choice for your family is key. The next time you meet with your financial planner, explore the ways in which you can make your IRA work for you.