Archives for January, 2014

23 Jan 2014
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Case Study: Translating a Few Hundred Dollars into a Hundred Thousand Dollars

Case Study: How To Take $560 and Turn it Into $100,000

The difference between using an IRA to invest in stocks, bonds, ETFs, real estate, or any other investment could save you HUNDREDS of dollars. If used correctly, those savings could translate into tens of THOUSANDS of dollars. We had a client send us a testimonial recently. She was so happy that we were able to show her how to save a few hundred dollars every month and increase her portfolio returns. Let’s use Beverly as an example to demonstrate how much of a difference only a few hundred dollars can make. Here is the actual testimonial:

“USelfDirect helped me change my self-direct IRA from making $0.00 in bonds to safely investing it in commercial real estate with a return at a much higher interest rate than I could have made from any bank, and certainly from my stagnant IRA… I was able to pay off my car faster and now I have $560.71 more freed up every month! I would recommend USelfDirect and their competent associates to anyone in the whole wide world who wants to put his or her money to work for them and realize a profit.” -Beverly U.

Beverly was able to save over $560 a month by simply reworking her investment strategy; that is over $6,000 a year! Here is how that translates into a huge difference:

Let’s be modest and say that Beverly is able to put half of her savings into her Self-Direct IRA every year, so about $3,300 in contributions. Using strategies that she learned from USelfDirect, let’s say that she was able to get an average 7% annual rate of return over a 10 year period.

If Beverly could continue saving at that same rate, then she would have $94,773 within 10 years!

Now, using her Self-Directed IRA, she would then be able to purchase an actual piece of property. That could be a rental home, a house to rehab and flip, or another investment option. Now not only is she earning money from her original investment strategy, she just folded in another huge source of income.

We used Beverly as an example but these types of results are very realistic. At USelfDirect, we don’t want to fill people up with false promises. We aim to provide real solutions for individuals just like Beverly.

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8 Jan 2014
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Multiply the power of your Self-Directed IRA.

 

 

Partner with other Self-Directed IRA investors and become an investment powerhouse!

 

Imagine looking for the perfect real estate deal or perhaps a really great business to invest in. Let’s say that you found it, the returns look great, and the risk is minimal. You take a look at the investment amount and realize that it is 10 times the amount that you actually have in your IRA. Most investors would be let down and think to themselves “How am I ever supposed to make the kind of returns I want to, if I don’t have hundreds of thousands of dollars ready to invest now?” On the other hand, the Self-Directed investor would rest assured knowing that he or she could invest without any problems.

The secret that the self-directed investor knows about is that you can actually partner with other self-directed IRAs on certain types of investments in a completely legal and IRS approved fashion. The simplest way to explain how this works is with a real estate transaction. Let’s say that there is a piece of property for sale that cost $200,000 and that you wanted to purchase that property in order to use it as a rental home. The only problem is that you only have $50,000 in your IRA. If you had a self-directed IRA then you could legally partner with other self-directed IRA owners and all go in on that property. The next step either finding other self-directed IRA owners or getting access to an investment network that finds multiple investors for you. (These types of investment networks do exist and USelfDirect can help you find one.)  Now, let’s say that you found 3 other investors all with $50,000. Together you could purchase the property. Once the property was rented out then the rental income would be split proportionately amongst the investors, in this case, four 25% portions. That income would go right into your Self-Directed IRA.

The above example illustrates the basic formula to partnering with other Self-Directed IRAs. If you or someone you know is seriously considering this option, then we suggest you speak with a licensed professional in order to make sure that you are investing under legal and tax-healthy circumstances.

Ultimately, this is just one of the many powerful ways a Self-Directed IRA allows you to invest SMARTER. Using these types of investment methods will have you earning more money and eventually retiring the way that YOU want to. If you would like to learn more about how to partner with other IRAs or about other Self-Directed IRA benefits then please reach out to us today.

You can also find more information on our SD-IRA Basics page. 

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