From the NY Times:
THE past couple of years have left many people staring in disbelief at the returns on their individual retirement accounts. Consider last year, when the Standard & Poor’s 500-stock index finished the year essentially where it started.
So it makes sense that people are looking for ways to earn more for retirement — or to make up for losses. Yet when I heard that an increasing number of people were moving money from traditional I.R.A.’s to self-directed I.R.A.’s that focused on real estate, I was skeptical that this was a good idea.
First, I wondered, how could this be done with retirement money? Was it even legal? And were people who had worked and saved money for their retirement really putting it into real estate so soon after the bubble burst?
Could you really have a conservative investment in your IRA today that earns 6, 7, 8% or higher? That’s legal? Yes you can, here’s the secret that your Wall St. broker and banker don’t want you to know: You can open a Self-directed IRA. That is an IRA account set up with an independent Custodian who makes the investments you direct it to (clever name huh?) instead of steering you into the products that earn them the biggest commissions and bonuses.
Of course there are some limits on the kind of investments but we’re not looking to corner the market on Greek reverse CDO squared repos (whatever those are). We’re looking for good income, inflation protection and Continue reading The secret to owning income producing apartment building investments in your IRA.