Why Technology is Important in Growing Your Self-Directed IRA
We understand that many people nearing or already at retirement age often do not have or do not rely on new technology within their everyday existence. If all you want to do is make a phone call, your phone could be just the thing. However, simple use of available technology could make a big difference in the value of your Self-Directed IRA whether you like it or not.
If, for example, you are devoting your Self-Directed IRA to real estate, you can benefit greatly by knowing how a few relatively simple steps can make a big difference with your retirement fund.
Chances are you are not going to find a buyer, rental candidates, or someone selling an ideal property for your plan by making a couple of phone calls or going through the local newspaper. Your best possible real estate investment may not be in your neighborhood.
Since you generally cannot live in or manage properties purchased or owned by a Self-Directed IRA, your best deal or buyer could be hundreds of miles away. This is where technology becomes a factor.
The National Association of Realtors reports that more than 70% of property searches around the country begin online. As a result of this, going online is the best resource of finding the right property for purchase based on your investing criteria. If you are ready to sell, or even rent out, a property you currently own, the most efficient way to attract your buyer or renter(s) is to showcase it on the internet.
Property information on the internet is updated constantly every day around the world. When someone lists their home for sale through a real estate agent, it appears on their listing service literally within minutes.
Thus, by the time the weekend newspaper or weekly magazine comes out (like we relied on years ago), many of the new listings may already have been sold.
When you have a Self-Directed IRA and are ready to buy, sell, or rent out, you want to be able to have access to any and all possible deals. You need to be able to make inquiries and responses as soon as possible in today’s world. It is your hard-earned money at stake.
There are ways to grow your Self-Directed IRA without owning a computer and/or a smart phone. You do not have to look at photos of your son-in-law’s dinner from last night or take a training course in operating a laptop from your downstairs desk.
Your local librarian, or a friend or family member with a computer or smart phone can help you with this. If you do have a computer or smart phone with online access, you can search for what you need on your own whenever you have the opportunity.
When you have the old-fashioned IRA which only pays a tiny percentage from fund investments, it is no problem for the originating company to mail out a mountain of paperwork containing a bunch of numbers you do not understand each month. There is rarely any major change from one quarter to next with your earnings.
However, if you are able to acquire a house for $100,000 and can sell it three months later for $125,000, you need to have the technology of reaching potential sellers and buyers available to you when you need it.
In addition to searching for what you need, this technology can also help you to find the buyer, seller, or renter you need.
You can use various real estate web sites, as well as social media, to get connected with buyers, sellers, renters, lenders, appraisers, home inspectors, real estate attorneys, and other related services. You might be able to connect with a partner you could invest your Self-Directed IRA funds with and who is able to help grow the property investment for you.
It does not matter if you have a computer in every room of the house or need to go to the local library once a month to use theirs and have the librarian help you. The key is to be able to leverage the technology which is available now to your advantage.
Using the selling a property for $125,000 three months later as an example, this likely would not happen if you did not use technology. You might not have found the discounted property and/or a buyer willing to pay the full price away from the internet. Without your own Self-Directed IRA, you could not take advantage of this opportunity without taxes getting in the way and possibly even killing the deal for you. A Traditional IRA or 401K is most likely not going to earn a full 25% total value within a 90-day period.
The more you embrace the technology, at any age, the better off you will be in terms of increasing the value of your retirement funds. Again, it is not a requirement that you own a computer or smart phone in order to do so.
Interested in learning more about Self-Directed IRAs? Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation. Download our free guides or visit us online at www.AmericanIRA.com.