If you want to take your retirement savings to an entirely new level, don’t think like a millionaire. Think like a multi-millionaire. According to a piece by philly.com, multimillionaire Mitt Romney kept $20 million to $100 million in a self-directed IRA. A growing trend with investors whether they are aggressive or conservative is to take back the control of their retirement future with ambitious self-directed ira investing. You can decide how to invest your money beyond the finite limitations of Wall Street’s stocks and bonds. Because it’s a niche retirement savings vehicle, the self-directed IRA comes with a lot of IRS rules and regulations. To find success, avoid self-dealing by using your tax-advantaged assets such vacationing in your Florida rental property. Also, don’t buy or sell life insurance or collectibles such as jewelry and antiques.
Finding hot spots for real estate investing
People involved in self-directed IRA investing often see strong returns from flipping houses. However, to keep seeing strong returns, it’s important to remain flexible and change with the current trends. As the real estate market tightens, you can shift from investing in real estate properties to other alternative investments. The real estate market is becoming increasingly more competitive, although there are some markets that continue to dazzle. An article by constructiondive.com home flippers in Detroit, Baltimore and Florida cities had the best returns on their money in the first quarter of this year. RealtyTrac reported strong returns earlier this year. On average, the resale price of a renovated property was $72,450 higher than the initial purchase compared to $65,290 a year earlier.
Researching alternative investments
If you like self-directed IRA investing, you are likely a free-spirited individual who doesn’t follow the herd mentality. An article bythestreet.com lists several alternative investments that investors should know about. Take the time to research different alternative investments to figure out which ones resonate with you and feel “right.” Trusting your gut instincts is part of what makes a multimillionaire succeed. Private equity such as start-ups and venture capital is one option worth considering, but you can also invest directly in start-ups as an “angel investor.” For people who are more on the conservative end of the investment spectrum, tangible assets such as agriculture land, oil and precious metal commodities often provide the right fit for multimillionaire-minded investors.
Getting out of stocks and bonds
Investors once took refuge in bonds when they featured a stock market. However, in recent months, more financial experts warn of an imminent crash in both stocks and bonds. According to a piece by cnbc.com, former OMB David Stockman said the crash in stocks and bonds will likely be a result of the excessive monetary policy also known as the fed’s quantitative easing program that prints money. Interest rates have been low for more than 6 years. By keeping rates low artificially, it is like a coiled spring that will create a violent and devastating reaction in the bond and stock markets.
An article by financialpost.com points out a multimillionaire does not think like other people. The article cited an annual survey by Tiger 21 that found 40 percent of Tiger 21 members don’t prefer stocks or bonds. Instead, 17 percent preferred hedge funds and 15 percent preferred real estate. Another 17 percent favored private equity. Although some say alternative assets are more difficult for retail investors to replicate, that’s not the case if you are into self-directed IRA investing.
At New Standard IRA, we make alternative investing more accessible for the average person with a free spirit and drive to become a multimillionaire. We can introduce you to a truly self-directed IRA that comes with complete checkbook control. For more information on self-directed IRA investing, please contact us.