Checkbook IRA: Establish a Real Estate Investment Strategy
Posted by: Self Directed IRA Advisor in FinanceCheckbook IRA accounts, also called self-directed IRA accounts, provide many options for account holders to increase their portfolio value through investing in real estate. As real estate investing is the number one way to make money in the U.S., it’s no wonder that many want to capitalize on this.
Real estate investing is a very diversified field, which can stymie some investors when it comes to determining how to invest their money. It needn’t be at all, however. Asking yourself a few questions will help you to quickly put together a real estate investment strategy for your self-directed IRA account funds.
3 Questions to Ask Yourself Before Delving into Your Self-Directed IRA Account
Investor Personality: As in, what type of investor are you? Do you like to take chances, are you super conservative. Or, do you fall somewhere in between the two. Knowing your investor personality will guide in selecting the most appropriate investment that won’t cause you constant worry and stress.
How Far Off is Retirement? Becoming crystal clear about this question will help you decide what type of real estate deals you want to invest your checkbook IRA funds in. You might consider investing in properties to rent, for example, instead of going for the quicker return of buying, renovating and flipping properties.
Retirement Income Needs: Most focus on the big number when they think about their self-directed IRA accounts. Eg, how much do I have/want to have in there? It’s important to break this down into monthly amounts. You should run projects for 20, 25 and 30 years. As in, will how much do I have to have in my account to sustain an income of $5,000/month over 20, 25 or 30 years (maybe even more).
Of course, there are quite a few more questions you need to ask yourself, but the answers to these three questions will help you to begin to formulate an investment strategy that works for you.
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