Today’s post comes from my colleague Dan Falardeau of New Direction IRA (Dan is a frequent guest contributor on my other site, hawaiihousingnews.com). New Direction IRA is a local Self-Directed IRA Custodian company. Self-Directed IRAs allow you to invest your retirement funds in everything under the sun allowed by the IRS — way more than just traditional stocks, bonds and mutual funds. This includes Socially Responsible Investing as well as, yes, real estate!
“OCCUPY” YOUR RETIREMENT FUNDS
By: Dan Falardeau
The emergence of the “Occupy Wall Street” movements in various cities around the nation are putting the focus of the country squarely on the frustration many Americans feel about Wall Street, the financial markets and the overall economy. While corruption and greed have become somewhat synonymous terms with “Wall Street” and “big banks”, you may not be the “protest and picket” type. Is there anything else the average American citizen do to help move our society and economy forward while still investing safely, soundly and, yes, profitably for retirement?
If you’re of the mind that the up and down volatile rollercoaster of the stock market just makes the bigwigs on Wall Street wealthier while your IRAs, 401(k)s and other retirement options continue to shrink, you’re not alone. So why not ditch your mutual funds altogether and choose alternative investment vehicles?
I Didn’t Know I Could Do That…!
Welcome to the world of Socially Responsible Investments and one popular way to invest in SRIs is with a Self-Directed IRA and 401(k). SDIRAs and 401(k)s represent a small but growing segment of the retirement fund investment market, comprising roughly 2% of the $4.7 trillion dollars that Americans are investing in their retirement. SDIRAs allow YOU to call the shots. YOU are the one choosing where to invest your funds and, more importantly, where not to invest.
Your choices are plentiful: notes, precious metals, timber, start-up companies, LLCs, private placements and, of course, real estate. Yes, you can flip a house or buy a condo for cash flow all inside your IRA — tax deferred or tax free! If you are of the “green” variety and want to promote pro-environmental initiatives with your investments, then perhaps you should consider sustainable timber. You could invest in Hawaiian Koa trees on the Big Island – all inside your IRA. You’d potentially make a very nice return come harvest time while helping both the global and local environments.
If you belong to or know a non-profit organization, charity, church, etc. that needs funding, you could loan them money in the form of a “Note” at a mutually agreeable rate — yes, inside your IRA. You’d be helping a cause you believe in while earning a very handsome return at the same time. Can you say that about your old mutual funds??
A classic hedge for investors during sluggish economic times are precious metals. Gold and silver are frequently in today’s headlines for recent record prices. Most investment advisors suggest diversifying your retirement portfolio — buying precious metals inside your Self-Directed IRA is certainly one option to consider. What sounds better — gold in a vault or Bernie Madoff’s derivative markets??
What about investing as a Private Lender for a Hawaii real estate investor that renovates properties using environmentally sound materials and practices? (From Mike: Big Rock Investments’ upcoming rehabs will use a bevy of natural, environmentally safe materials such as natural linoleum and non-VOC paints). You could earn a very high fixed return with the property as secured collateral, all while being part of an exciting “greenhab”, knowing your funds help promote a more sustainable Hawaii.
Save the World, Save Your Retirement
Investing for your family’s retirement is important, but so is feeling good about where your investment funds go. For many people, it’s not just about the return. Deciding not to invest in a company whose product or actions you question or frown upon can be very rewarding at the end of the day. Many people today are completely unaware that they can invest their retirement in more than stocks and bonds, yet there are many other options completely permissible by the IRS. Educating yourself about your alternative investment options instantly puts you head and shoulders above those around you while also better preparing you and your family for your retirement years. Don’t let your retirement be “occupied” by Wall Street — with a Self-Directed IRA, you’re in control from day one.
To contact Dan Falardeau and take control of your own retirement, visit New Direction IRA’s website. To join Big Rock Investments’ group of Private Lenders for our upcoming environmental “greenhabs“, visit our Private Lender page or call (888) 545-0003 in Honolulu.