When you are preparing for your retirement the key to build a thriving nest egg is to often put more money away for your retirement and to make investments that accumulate enough interest to extensive increase your overall fund. By achieving both of these goals you can combine your retirement money into a very healthy fund to live off of in your later years. Sadly traditional IRAs won’t make you much interest and you would most likely be better off using self-directed IRAs for at least a piece of your retirement account to help boost your earnings in interest.
Just funding your IRA accounts with the maximum yearly input every year is a good place to start saving for your retirement but it possibly won’t be sufficient unless you are building some very high interest investments from your IRA accounts.
Self-directed IRAs give you the capability to invest in things like precious metals, real estate and tax liens. These are the investments that can produce respectable returns for your account as long as you are cautious and make sensible investment decisions.
Take for example real estate or tax liens. If you use your retirement money to buy a few rental properties you could earn a decent amount of each and every month through rent. Sure you will spend time paying back the purchase price of the property with the rent, but when you are finished with that you’re retirement account will grow each month. Tax liens do the same thing for you because you are fundamentally collecting interest off of the liens on other people’s property. Many investors merge these two investments together, because any liens that aren’t paid off will award the investor with a new property that they can then rent out for an even higher level of profit.
Investing in real estate and tax liens is a great way to start earning a stable flow of income into your retirement without even counting your yearly contributions, but only if you make excellent investment decisions. If you purchase a house that people don’t want to rent you will be stuck paying property taxes and will exhaust your account each month that it sits there not generating you money. Tax liens can also harm your fund if you get liens on houses that are falling apart.
By carefully investing your retirement funds into more profitable opportunities like real estate you can generate remarkable returns that will give you more to live off of when you retire. But be smart with the investments that you make and stay away from gambling all your money on a single investment. That is the key to creating a decent retirement account.
Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com