IRA Tweaking with Five Hidden Investment Ideas
The IRAs used by millions of adults to save for the future, is an investment account that isn’t subject to the normal taxation rules on income. Nearly all of the IRAs in America are composed of money market accounts, stock portfolios, mutual funds and annuities. Bonds and certificates of deposits from interest-paying banks are also safe for investors’ savings. However, the IRS rules allow for dozens of other investment opportunities when working within the constraints of Individual Retirement Accounts, says Forbes magazine. Consider some of these alternative income-producing opportunities if your current investments are yielding less than stellar returns.
Often Overlooked IRA Investment Methods
If the team handling your Individual Retirement Arrangement will agree, you can invest in opportunities like hedge funds and venture capital programs rather than the stock market or a slow-growing bond. However, it is important to remember the risks and challenges that accompany these investments. Forbes warns that you can’t simply sink your money into a derivative and collect your income years later. Savvy investors will need to constantly monitor their results and adjust their tactics when using one of these alternative investment methods. These opportunities do provide higher returns when they are successfully leveraged.
Precious Metals or Paper Tigers?
The value of precious metals like gold and silver has only grown since these materials first became publicly assessed and traded. The IRS allows both bullion and certain coins to be used as part of a retirement portfolio, according to Money Crashers. These materials are a great option for anyone who is concerned about the potential of losses by trading stocks or investing in mutual funds. The value of gold or silver would have to fall to reduce the amount you have saved, which is highly unlikely in the next few decades. There’s no income produced as with other investments, but the rising value of the metals will still cause the overall value of the retirement account to grow.
Real Estate Options – There is Still Time to Buy Low
If you and your adviser are willing to wade through dozens of complex regulations, you can add certain types of real estate to your personal retirement portfolio. Rental properties and other income producing investments are allowed, but properties that only grow in value are not allowed by the IRS. There are are also requirements related to the other liquid assets found in plans says Forbes magazine. You must have enough cash within the account to fund at least the down payment on the investment, as well as to cover related maintenance. Unfortunately, you can’t collect personal income from the property or live in it yourself and still use it for your retiree savings fund.
Currency: Dollars or Rupees?
Trading dollars for rupees can net you quite a profit if you time the transaction correctly. While this type of trading is highly misunderstood, it has great potential for producing income when used properly. Account holders are allowed to invest their earnings in currency trading if they operate a self directed account. Complete IRA says that these accounts come with higher fees, but provide you with greater flexibility in the long run. Hiring a professional team that is experienced in the world of currency trading is the ideal way to harness the power of exchange rates to grow your retirement savings.
Production Investments That Grow Grow Grow
As demand for new energy sources grow, many people are investing in natural gas wells, coal mining facilities and solar panel production. The IRS is happy to allow you to invest your retirement portfolio into these ventures if you handle it properly. The Wall Street Journal says that many people even invest in cattle farms or fishing rights. These ventures must provide a steady income that goes directly into your Individual Retirement Arrangement to be legal under IRS regulations. Using retirement funds to invest in natural gas production or a herd of cows will lead to high fees if the income is taken personally rather than returned to the account.
Learn more about your alternative investing options now by calling 877-339-4559