Given just how many advertisements for retirement you see on TV, you would have figured that you’d heard of the possibilities of using a Real Estate IRA in your portfolio by now.
But you’d be surprised. Many investors weren’t even aware of the possibility, or if they were, hadn’t given it much consideration simply because it’s never been a priority.
That’s unfortunate, because many investors can stand to build wealth by using real estate in their retirement portfolio. And many people who are looking for income from their retirement portfolio might be surprised to learn that real estate can be one of the best ways in which to immediately acquire that sort of stable income for yourself–if you do it right.
How do you do it right? Well, that’s a topic that takes more explaining than we have space here. But we can offer you a few tips for incorporating a Real Estate IRA in your portfolio to help you diversify your assets and invest in a long-term source of income for your retirement.
Tip #1: Research the benefits of the Real Estate IRA.
We know that this sounds a little dubious: our tip is giving you homework here. Yet you’d be surprised at how many investors simply didn’t know how many benefits there were to investing in real estate through an IRA. For example, there is additional protection from creditors when you use leverage, allowing you to feel more secure about the risks you’re taking. You’d be amazed at how often many investors–even those with some experience in real estate–didn’t know about this additional protection.
Tip #2: Plan an “ideal portfolio” for your goals.
Even people who share the same goal of building retirement wealth will differ in their strategies simply because of different circumstances. A 70-year-old will want to invest in safer assets than will a 25-year-old; the 70-year-old has less tolerance to risk than a 25-year-old should. Incorporating real estate within the context of your goals is important, especially if you want to generate immediate income from the renting of your real estate properties–and this strategy is better suited to some than others.
Tip #3: Develop an eye for real estate.
It’s not enough to say “I want to be in real estate more.” You should know real estate. You should know the common terms. You should know the local market. You should know what might be expected of you when you’re an investor in real estate. It’s not enough to simply wish it; you should try to make it happen in reality by first developing an eye for real estate. This means “investing” in some books on real estate, doing some reading, and maybe even watching the local real estate market to watch what sells and what doesn’t.
Tip #4: Build tolerance to market fluctuations.
Are Real Estate IRAs great for diversification? Of course they are. But that doesn’t mean you should swing to the other extreme and abandon the stock market simply because of a few days, months, or (sometimes) years of volatility. Instead, you’ll want to build your tolerance and invest with your head, not your anxiety.
[tweetthis twitter_handles=”@iraexpert” hidden_hashtags=”#RealEstateIRA”]Are Real Estate IRAs great for diversification? Of course they are…[/tweetthis]
Tip #5: Persist.
If you want to learn more, then don’t let this article be the only way in which you look into real estate. Get involved. Call us at 1-866-7500-IRA(472) to learn more about Real Estate IRAs or continue reading our website. The important thing to know is: you’ll never really know whether or not a Real Estate IRA is a good decision for you until you know what they’re all about.