Louisiana Real Estate – Invest In A Brighter Tomorrow With A Self-directed Ira
Invest In A Brighter Tomorrow With A Self-directed Ira
Are you one of a multitude of investors who has recently experienced significant losses in your retirement account as a result of stock market decline?
In 2008 Americans were faced with the unthinkable collapse of large investment banks and corporations, combined with diabolical scandals targeting investors. The climate of fear created by scandals like the recent global Ponzi scheme masterminded by rogue Bernie Madoff, has some investors running for the proverbial hills with their nest eggs.
The Recovery Plan
Investors fed up with the shrinking of their retirement accounts and the shortcomings of financial entities entrusted with their livelihood, may want to consider taking control of their financial destiny and start building wealth with a self-directed IRA. The key advantage of the truly self-directed IRA is that the account owner is directly involved in the choosing of IRA assets. A self-directed IRA allows asset classes in both “traditional” investments such as stock, bonds and mutual funds and “non-traditional” investments like real estate (foreign and domestic), mortgages, notes, tax liens, LLCs, private placements and much more.
An increasing number of individuals are discovering the self-directed IRA, an investment vehicle that features the freedom to choose from this array of investment alternatives without being “pigeonholed” with the limitations of traditional stock market investments that brokers and bankers offer for your IRA.
The motive for Wall Street to monopolize your retirement portfolio is based on the steep “commissions” they make selling you their limited menu of financial products. Conversely, a custodian and administrator in charge of a self-directed IRA account will not (or cannot by law) sell you investment advice, financial products or charge commissions – they simply charge an annual fee of anywhere from $100 to $2000 dollars depending on the investment portfolio.
The Power of Diversification
Consider this. Most of us are familiar with the term “diversification” in regards to investing, are we not? Diversification is a concept often explained with the age old saying – “don’t put all your eggs on one basket
1000
.” Harry Markowitz, thought leader and developer of the Modern Portfolio Theory stated that diversification is the “free lunch of finance.”
Yes, it is deemed mission critical to maintain a diversified “mix” of investments in an investment portfolio. And the rather shocking fact is – the retirement portfolios of 96% of American investors currently held in inflexible traditional IRA accounts in banks and brokerage firms simply do not adhere to this traditional wisdom. (Buyer beware: the “self-directed IRA” offered by many banking institutions and brokerages is a “misnomer” – it is a term that implies that the account holder can only “choose” from the “menu” of stocks, bonds and mutual funds offered by the firm or institution.)
So why be limited only to stocks, bonds and mutual funds as an investment strategy to grow your assets? Should you settle for a 2 or 3% rate of return when you can reach for 20 or 30%, depending on your risk tolerance? A self-directed IRA allows for an endless variety of asset classes, with the IRS disallowing only 3 types of investments: Life Insurance, Collectibles and S Corporations. (reference: IRS Publication 590)
With optimum diversification and the reallocation of assets in a self-directed IRA, meeting your retirement goals can truly become a reality.
Get Advice
“Those that won’t be counseled can’t be helped.” – Benjamin Franklin. It is imperative that after opening a self-directed IRA account you consult with experts to avoid breaking any laws or prohibited transactions pertaining to use of IRA funds. You would not want to be subject to stiff IRS penalties and losses due to lack of education and expert counsel.
In every investment portfolio, there needs to be a good mix of opportunity and risk. If you want to make money, you cannot cut out all risk, however the goal is to find an appropriate balance and every investor must decide what his or her risk tolerance is with the assistance of a trusted financial professional.
Real estate investing, for example, a historically safe and tangible investment, has created significant wealth for investors who understand the risk-return trade-off of this asset class. With real estate, a self-directed IRA investor has the security of a tangible asset, whereas the investment in a mutual fund you may not know “where” your money is actually invested. With your self-directed IRA, you can take control, choosing from a myriad of investments to round out and elevate your retirement portfolio.
The Approach
Six Steps to a building your financial future:
1) Choose a top-tier custodian and open a self-directed IRA account
2) Do your homework – continue to educate yourself on self-directed IRA investing
3) Get advice on potential investments from your informed (specifically on self-directed IRA guidelines and investing) and trusted professionals (CPA, attorney, advisor)
4) Seize higher yield investment opportunities employing investment growth strategies
5) Capitalize on the incredible tax advantages – one key objective of a self-directed IRA is to provide a vehicle for a taxpayer to grow their wealth without being subject to income taxes on the gains
6) Be accountable, taking a proactive approach towards improving investment returns, taking advantage of a greater breadth of investment options
Take Responsibility for your Financial Future
It’s up to you.
Fewer than 4% of investors self direct their investments, are you ready to take an active role?
Taking personal responsibility in planning your financial future is more important than ever. Think about it. The amount of retirement savings you accumulate will have a direct and dramatic impact on whether you will be able to maintain your standard of living when you retire.
To maintain their standard of living, most people will need more than social security and their company retirement plan
1000
. With a self-directed IRA you have both the privilege and responsibility to make sound financial decisions for your IRA money. However, you must be prepared to educate yourself, enlisting the assistance of qualified informed professionals to achieve greater diversification and investment potential.
A self-directed IRA is an extremely valuable tool to create wealth when guidelines are followed and used efficiently with the proper allocation of assets.
If we remain proactive in educating ourselves about the various options and flexibility we have to grow our retirement dollars, we will indeed reap the benefits and prosper.
Why not take control of your financial destiny?
Invest in a brighter tomorrow with a self-directed IRA.
By: Patricia Reynard Hightower
Article Directory: http://www.articledashboard.com
Patricia Reynard Hightower is a Managing Partner of Road Home Investments (www.roadhomeinvestments.com) in New Orleans, Louisiana, and a speaker and educator on Self-Directed IRAs. Contact: 504-586-3655 or patricia@roadhomeinvestments.com
If you’ve been keeping up with my blog posts lately you’ll know I’ve come to adding a few news posts from around the web on this subject. I’ve got a couple more today that are new and updated, so let me know what you think of em…
GREAT OPPORTUNITY IN A NEW DEVELOPMENT. NICE…
GRETNA, LA; $30000; Great opportunity in a new development. Nice size lot to build your dream home. Offered by: Bonnie Buras Phone: (504)392-0022,
GREAT OPPRUNITY TO LIVE CLOSE TO THE WATERWAY…
EMPIRE, LA; $30000; Great opprunity to live close to the waterway. Offered by: Bonnie Buras Phone: (504)392-0022,
Louisiana Cowboy Town SOLD for 2.9 Million! | Gilmore Auction …
ALEXANDRIA, La., November XX, 2004 – Sperry Van Ness/Gilmore Auction & Realty Co., one of the nation's largest commercial real estate investment and accelerated marketing firms has completed the sale of Louisiana Cowboy Town Multi-Event …
Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.
Have a great day!
Find Out Where Insurance Agents Rank In You State
Certain states are just not going to perform well for you, no water how hard you try, and other states amaze you with the response you receive.
So its not just you! Your abilities, plus your prospect list qualities, plus the states characteristics will largely determine you success tendencies. Sending out a mailing piece in Wisconsin, and sending the same number in Arizona are going to produce different results.
Each year an accurate attempt is made to see how one state stacks up against all the rest. Then next step is to place in a listing order from top to bottom where each states insurance rankings are in comparison to the other states. This is not a flip-a-coin guess procedure. A full thirty evaluation steps are used to deter a particular state’s marketing capacity. A full computer disk of data is programmed to analyze the state insurance agents placement. Then a state insurance rating can be applied/.
1. Number of active health and life insurance carriers approved in the state.
2. Number of health and life insurance company recruiters aggressively pursing the agent’s business 3. The total state population from the 2004 census figures
4. The upward or downward change of population between 2000 and 2004
5. The amount of health and life insurance agents per thousand residents
6. How many residents reside in the average square mile
7. Examining the data, what percentage of the state’s residents have graduated from high school.
8. How many percentage wise have a college degree
9. What is the median (middle point) family income 10.How does the state median income compare to other states
11.The per capital money income level
12.What percent of the state residents actually earn $100,000 or more 13.What percent of job holders work in he financial, real estate, and insurance fields
14.Minority % of businesses operating in the state 15.Income trends of agents with under 4 years experience
16.Average income for agents after completing more than 4 years
17.The total of state licensed health and life insurance agents
18.How many experienced agents that place business with outside carriers
19.Comparison of how brokers rate compared to other states
20 Largest counties
1000
of where insurance agents reside 21.What % of state agents reside in the 5 largest counties
22. United State’s senior population percentage average
23.What percent of seniors make up the state’s population
24.How many agents concentrate selling senior citizens
25.Of General Agents, PPGA’s. and MDRT members how many are there
26.Total % of experienced agents that broker life insurance policies
27.Total % of experienced agents that broker health insurance plans.
28.Brokerage % that are active in group and employee benefit coverage
29.Average length of time a health or life agent is currently surviving 30.The extreme turnover of agents at just 18 months and the meek survival of agents to stay above water at the 4th year point.
During the last 6 months 7 states have changed their position in the State insurance agents rankings. Rapid bumps in a state’s population growth, along with changing economic conditions can occur relatively swift. This of course baries in each individual state. The opinion that each state has it’s own personality is absolutely true.
NEWEST STATE INSURANCE AGENTS RANKINGS
1.FLORDIA
2.CALIFORNIA
3.TEXAS
4.OHIO
5.WISCONSIN
6.NORTH CAROLINA
7.MINNESOTA
8.GEORGIA
9.MICHIGAN
10.MISSOURI
11.TENNESSEE
12.OREGON
13 ALABAMA
14 KENTUCKY
15 ARKANSAS
16 KANSAS
17 MISSISSIPPI
18 OKLAHOMA
19 NEBRASKA
20.UTAH
21.NEW MEXICO
22.WEST VIRGINIA
23.NORTH DAKOTA
24 MONTANA
25.MAINE
26.PENNSYLVANIA
27.LOUISIANA
28.MONTANA
29.IOWA
30.IDAHO
31.DELAWARE
32.ILLINOIS
33.MASSACHUSETTS
34.SOUTH DAKOTA
35.NEW HAMPSHIRE
36.VIRGINIA
37.CONNECTICUT
38.NEW JERSEY
39.NEW YORK
40.WASHINGTON
41.MARYLAND
42.INDIANA
43.ALASKA
44.WYOMING
45.VERMONT
46.RHODE ISLAND
47.COLORADO
48 ARIZONA
49.HAWAII
50 NEVADA
By: Donald Yerke
Article Directory: http://www.articledashboard.com
You have heard the saying that the more you know, the more you realize you don’t know. Don Yerke likes to concentrate on what you don’t already know and what no one else dares to print. Tell it like it is, and more people listen. The website address is www.direct-marketing-mailing-lists-brokers.com
Mail this post
