If you’re looking to find out where to invest in a Roth IRA, then I’m sure you’ve already realized all the benefits a Roth IRA can provide for your retirement future. Roth IRAs a a great way to build a substantial retirement nest egg and capitalize on tax-free investment profits. Can you imagine how fast your nest egg will grow when you are able to put 100% of all your profits earned with your retirement savings back into your account? Where to invest in an IRA depends on what type of investing you plan on practicing, which we will go over in this article.
First of all, it’s worth mentioning the maximum income for a Roth IRA. The maximum income for a Roth IRA is $100,000 if you’re single and $159,000 if your married filing jointly. This means that if you’re even thinking of opening a Roth IRA, you must make less than the amounts above. If you meet the maximum income for a Roth IRA requirements, then keep reading.
Alright so like a said before, where to invest in a Roth IRA depends on what kind of investing you plan on doing. Not sure what it is you want to invest it yet? I suggest that you decide this first so you can choose a Roth IRA provider that can meet your individual needs.
One place where you can invest in a Roth IRA is the bank. Banks are the best place to invest if you don’t have much money to invest at the beginning, as their minimum investment amounts are usually much lower than other providers. However, banks tend to provide very little choices as to what you can invest in with your account. Most of the time, they only allow you to invest in company stock or other securities that they can profit from. And, even though they can guarantee you a certain return, it’s often a very low one.
Another place to invest in a Roth IRA is a mutual fund company. These companies allow you to choose which of their mutual funds you’d like to invest in- whether it be stocks, bonds, or other securities. But again, your choices of investments are very limited. Nonetheless, this tends to be the most popular route people take when opening a Roth IRA. This is also why so many people’s retirement accounts are hurting right now.
You can also invest in a Roth IRA at brokerage firms. Brokerage firms are like investment “middle-men,” so be ready to pay various fees and expenses. They are most often connected to purchasing stock shares (which they suggest to their clients). But, some do allow people to research and decide which stocks they would like to invest in.
Here’s an option where to invest in a Roth IRA that I strongly recommend you consider. You can open a Roth IRA with a trust company. Retirement accounts managed by a trust company are usually self directed IRAs. The account holder is in sole control over a self directed IRA and chooses which assets to invest in. You can also choose from a much wider array of investments besides your ordinary volatile securities. With a self directed IRA, you can invest in real estate, energy properties, green energy, businesses, gold, tax liens, and much more. You can find out more about self directed IRAs by reading more of my other articles.
In today’s current economy, real estate provides investors with huge opportunities. Before the housing bubble burst, many contractors were concentrated on building elaborate, “McMansion” type homes that cost over $250,000. As a result, many people could not afford or handle the payments on these homes, and defaulted (you can leave these homes for Realtors to deal with).
Today, there is a hidden real estate market out there that has recently formed, and people are taking advantage of it as we speak. Many working class families are searching for a home they can afford, preferably under $150,000. But with all the recent concentration on selling huge, expensive homes, these families are left with no place to call “home.”
I know of a company that has taken the initiative to provide affordable housing to these kind of families. What they are doing is allowing private investors to get in on all the action! Many investors are experiencing huge returns around 15%, 25%, and even 40% each and every year. And since they are investing with a Roth IRA, all the profits they make are never taxed!