slide 1: Retirement Investing
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slide 2: Statistics have revealed that at the end of 2001 42 of U.S. households had an IRA
account. The total value of these accounts was 2.4 trillion. The wealth from these
Traditional IRA accounts constituted almost half of all financial assets for the
households involved. Due to the downfall of the economy and the poor results of the
stock market over the past few years 5 trillion has been lost. Much of this money
was retirement money that was in Traditional IRA accounts. Now IRA owners are
desperately searching for other means of investing their IRA funds. By investing in
other options besides typical stocks bonds and mutual funds these individuals have
managed to begin building their retirement plans again because making money
through any investment vehicle is the purpose of any Roth IRA. Click here
retirement investing
Is Real Estate in your IRA the Solution Real estate is one of those possible
investments. The Roth IRA rules and simple IRA rules regarding investments in real
estate are complex but the rewards from such investments can be huge. Many
people have the wrong concept of their IRA retirement account. They believe these
accounts must be offered by an insurance company a bank or a brokerage house.
This is not true. While the IRA does require a large institution to act as a trustee it
should be remembered that the IRA itself is merely a trust that is given tax benefits.
These tax benefits are available as long as the trust contains provisions. So
basically an IRA is nothing more than a trust that must conform to certain conditions.
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IRA accounts must meet specific requirements. All contributions must be in cash.
The only exception to this is if a contribution is a rollover of another account. Be sure
slide 3: you are aware of the IRA contribution limits. Presently an individual under the age of
55 can contribute 5000 per year. Over 55 the limit is 6000. The trustee of the
account must be a bank or another individual who has demonstrated they will
administer the trust with all the requirements. In no way can any part of the trust
funds be invested in a life insurance contract. All interest that is gained is non-
forfeitable. All assets that are in the account must not be mixed with other property.
The exception to this is when a common trust fund or common investment fund is
involved. As long as there requirements are met the IRA account can do anything
that a trust can do.
Your IRA account can be invested in many ways. Aside from stocks and bonds you
may invest in the start-up of a business real estate tax lien certificates and investing
in a limited partnership. These are only a few ways in which your funds can be
invested. In short the only things that you cannot invest in with the funds from the
IRA account are life insurance and collectibles. Get more info long term investing
Now that you know what investments are not allowed lets take a look at what is
allowed. IRA account funds can be invested in trust deeds the mortgage of the IRA
owner loans made to private corporations and real estate. There are many more
but before you take further steps to invest your IRA funds it is advised that you
consult with your CPA or contact Estate Street Partners to make sure the possible
investments are not prohibited.
Summary:
IRA investment offers such a wide range of investment options. An IRA simply
stands for an Individual Retirement Account and these accounts are held in financial
institutions and they are claimed or withdrawal takes place when the investor has
retired or come of a certain age.
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