Yes, You can Double Your ROI With A Self Directed Roth IRA (Individual Retirement Account)

My son and I were sitting outside a cafe on the waterfront, just soaking up the suns rays and having an ice cold beer. When an old friend Tom walked by, we invited him to sit down, bought him a beer and we started talking. You will remember Tom, I have written about him before, he works for a management company that handles self directed IRAs. Anyway, we were discussing when clients should be encouraged to convert over to a self directed Roth IRA. Tom said to minimize the tax they had to pay, he actively encouraged them to convert to a self directed Roth IRA when they turned over four houses or more a year.

This may be a good time to explain exactly what a self directed Roth IRA is. The important thing to remember with a Roth is that the contributions you put into the account are not tax deductible. As long as you have had the account open five years or more, and you are over fifty nine and one half years of age, the money that you take out when you retire is not taxed, ever. To be eligible for a Roth IRA, if you are single or head of the house, you can not earn more than $116,000, in the year that you start your Roth up. You can only put in contributions of $5000 per year, until you are fifty years of age or over, then you can up it to $6000 per year. If you expect to do a lot of investing, a Roth is the only way to go.

We talked about the fact that the baby boomer generation are converting their 401(k)s over to a self directed Roth IRA in ever increasing numbers. Maybe that's because, rolling over your 401(k)s is a great way of financing your real estate deals. More and more, people are waking up to the fact that the banks and brokerage houses are ripping them off. They are finding their way to freedom by investing in real estate. There is still money being made in real estate if you know where to invest, especially when the profit you make is tax free.

I wrote an article last week, about how some of you were asking, "Is my self directed IRA guaranteed?" Well, I told you it was not guaranteed. Very few investments are these days, however, having said that, we are offering one of the few real estate investments where the ROI is guaranteed. Indeed, the ROI is guaranteed to be at least double the percentage that your investments earned last year. Yes, at least double, what your ROI was last year. You will understand what I am saying when you check it out. Now I had a very good response to my articles last week, and it makes my heart glad, it really does, and I want to thank everyone of you who signed up. One of the additional advantages of investing in a self directed Roth IRA is the fact it utilizes the power of compound interest, over and over.