There was a time when I wanted to know; what type of account can my rollover IRA be put into. I thought that many of my readers might need this information, so, here's what happened and what I learned.
I was leaving a long-term employer and getting ready to start my own business. I had accumulated a reasonable amount in my 401K by contributing 10% of my annual income, which was the maximum that my employer would match.
Contributions
Together, with my contributions and those of my employer, a portfolio that consisted of moderately risky mutual funds, the value exceeded $100,000. Of course, that was before the recent stock market fiasco and the account had been earning an average return of 8% annually.
Average Returns
When I was trying to figure out what type of account can my rollover IRA be put into, I was also looking at average return rates. I hoped to earn at least as much. I was really hoping to earn more. Here are the choices that I had. You probably have the same ones.
Some Choices
The custodial company for my 401K also managed traditional IRAs. I could have transferred the fund, stayed with the same company and continued to earn approximately the same rate. Thankfully, I did not choose that option. Because, I would have been among the majority of account holders that lost an average of 20% over the last year. If everything turns around, they may be able to recoup that loss, but it will take about four years and that's if things start to go well, again, right now.
Approved By The IRS
I could have transferred the fund to just about any bank. Most of them offer IRS approved individual retirement accounts and as long as the account is approved by the IRS, your tax-deferred status will be maintained.
Less Than 4% Returns
But, I continued to learn about; what type of account can my rollover IRA be put into, because banks, at that time and today, are offering less than a 4% return on my investments. I felt that there had to be some way to earn more and I found out that there was.
IRAs Can Be Invested In Real Estate
I had some experience in the real estate market, but I had not been aware that IRAs could be invested in real estate. I learned that what type of account can my rollover IRA be put into included a 'real-estate-IRA?, which is an option offered by some self-directed custodians.
How Does 30% Sound?
In one year, I earned more than a 30% return on my investment. The following year, I earned more and I have continued to earn, as the stock market has continued to decline.
The Hidden Real Estate Market
The housing market is a little different today than it was 10 years ago. There are still buyers and renters out there, but you have to know where to look for them. If you don?t know, you can learn. This is known as the ?hidden real estate market?. Hopefully that gives you something to think about. I am glad that I took the time to find out what type of account can my rollover IRA be put into, before it was too late.
0 komentarze:
Post a Comment