Each morning as our bare feet hit the floor beside our bed, we are in fact one day closer to retirement age. Those of us who are W2 employees may have our employers set aside a portion of our earnings in our company retirement plans. We choose the funds we are offered and then hope that earnings will outpace the expected inflationary future.
Trouble is, often our retirement savings don’t work as hard as we do – largely around the choices we make. Many try to time the market, pulling their money out of stocks and bonds at “just the right time”. The trouble with the market-timing strategy is that there are no earnings while on the sidelines. With a self-directed IRA from NuView IRA, you have more ways to keep your money invested than simply riding the ups and downs of the stock market.
For example, one of our clients owns rental properties and lends money from his real estate IRA. Both of those categories of investments produce a cash flow into his custodial IRA account. The $2,300 per month payments received by his IRA are aggregated into a $10,000 fund that is used, combined with a hard money lender, to purchase mortgage notes.
Another investor who prefers to purchase tax liens has addressed their use of cash differently. She has a brokerage account opened under the Administration of NuView and requests a transfer of the cash as it moves into her IRA. She can invest in the public markets, building funds for the next tax-lien auction.
Many of us have multiple IRA accounts, perhaps a Roth, Traditional or even an HSA. The ability to partner those funds together into one investment can also be a great tool for smaller balance accounts. For example, a NuView client can purchase real estate through a tenancy in common titling, partnering several accounts together. A property priced at $50,000 can be purchased with 10% of Roth IRA funds and 90% of traditional IRA funds (titling would be NuView IRA FBO Client Roth IRA as to an undivided 10% and Nuview IRA FBO Client Traditional IRA as to an undivided 90%).
Saving consistently and investing wisely is likely the only formula to achieve your dream of retirement. Unless you are fortunate enough to be retired, you likely spend most days working for your present. Make sure your IRA is working as well for your future.
Glen Mather is President of NuView IRA, Inc., a national leading self-directed IRA administrator based out of Orlando, Florida. He can be contacted at 407-367-3472 or gmather@nuviewira.com.
