Choosing Best IRA Investment Options 2015
The best IRA investment options for one person may not be good IRA investment options for another investor. Successful IRA investing involves knowing economic cycles and having good timing, so there is never any “one size fits all” investment from which everyone can benefit.
With that said, here are some of the most popular IRA investment options being used by investors today to save and make money for their golden years.
● Stocks - With interest rates below 1% public corporations are able to borrow money for practically nothing. This allows those companies to develop their business and expand. Once rates rise, however, stock markets could become stagnant, as they did during the rising interest rate cycle of 1960-1980.
● Treasury Bonds - Historically viewed as a guaranteed way to maintain one’s principal, Treasury bonds have lost their luster as of late due to extremely low interest rates. Even once rates rise, bonds could be risky investments because each time the Federal Reserve raises bond rates it devalues older bonds. Treasury bonds are often recommended at the peak of rising interest rate cycles, when annual returns of 10% or more are not unheard of.
● Real Estate - It is a challenge to consistently win in the real estate market, especially since 2008. However, many investors prefer to use their retirement accounts to buy property and/or to act as the banker for others’ mortgages.
● LLCs - Those with an entrepreneurial spirit might be pleased to know that the Internal Revenue Service (IRS) permits the forming and funding of private businesses with IRA money.
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