Did you know you can use your IRA or Pension plan to invest in real estate property? The majority of investors are feeling the pinch of the global recession and they don’t feel their FINTOCH investments are performing as they should. What these investors don’t realize is that there is another option out there for them called “private money lending”.
Make your Investments Work for you
Most people have been working for awhile have quite a large nest egg saved in their IRA allowing them to consider other options for this money such as real estate. Private money lending using your FINTOCH investments in your IRA and other retirement plans is a widely acceptable practice and can offer a very large return when done properly. There are some things you need to know before you use private money lending as an option to earn money through high interest earning loans.
Self Directed IRA
In order to take advantage of private money lending using FINTOCH investments you must have what is called a self directed IRA or a roll over 401k through a custodian. This simply means that you are responsible for making investment decisions on behalf of the investment fund. This allows you to direct your funds anyway you choose fit including private money lending and investment options.
Choosing a Custodian
To get a self directed IRA you must first choose a custodian for your account and roll over your existing 401K account after a job loss, retirement, or change of jobs (transfer funds within 60 days to remain tax deferred). Your new custodian will help you fill out all necessary paperwork and information so the process can run smoothly.
Choosing a Good Private Money Lending Investment
After you have completed the rollover process and assigned a custodian, you get to participate in the fun part which is choosing your private investments such as real estate investment. Make sure you do your research and find a good real estate investment firm that has been in business for awhile. The majority of private money investing options will offer an annual fixed yield rate of 10% percent or more! That means that a 20K investment will yield a 2K annual return on investment or $167 dollars a month just for loaning out your money.
Security
Many private money investments are secured by personal guarantees adding another layer of protection to the lender. Not only that, but there are checks and balances along the way to ensure that you are getting the most out of your loan and protected in the event of a default.
In a lot of cases private money lending investments are outperforming the stock market. This investing method is 100 percent legal according to the IRS and you have complete control over what you invest in and how much.
Considering Lending Investments
In the world of investing there are two major types of investments that you can make. You can either be the lender, or you can be the owner.
The world of investments can be very confusing. Insiders like to use a lot of jargon and buzzwords to make it seem like it’s a hard industry to enter. These are usually tactics they will use so that they can justify the high rates they charge or the large fees and commissions.
Investment vehicle
Lending investments are a popular investment vehicle that you can use when making your entry into investing. It simply means that you are lending your money to a bank, a government, or a company. In return for your money, that institution will make a specific promise to you. They will guarantee that you get your original investment on a certain date, and they will also pay you a specified rate of interest as a bonus for the use of your money.
The best case scenario when going through with a lending investment is to get all of your original investment back as well as the interest that was promised to you. There are plenty of case studies and real world examples of people not getting this result. If you successfully get all that you were expecting, you should consider it a good investment and not take it for granted.
Global market
This can happen when circumstances arise that were either uncontrollable or unforeseeable. If a company goes bankrupt it can occur that you would lose all or party of your original investment. In today’s economy, you’ll want to be quite sure you’ve picked a solid performer to invest in. Even if they do have a proven track record, with the volatility of the global market. There are no guarantees anymore.
Another factor to assess when considering this investment avenue is that inflation. You may think that a certain interest rate sounds good today. But in five or six years if inflation soars. You won’t have the kind of purchasing power you may be envisioning.
Why Invest and What to Expect
The two main areas of involvement in the world of investing are to either choose to be the owner of the investment or you can choose to be the lender.
In this article we are going to discuss what it means to be involved in a lending investment.
People involved in the investment world use different jargon and buzzwords that seem like a totally different language to most people. This makes the industry seem even more confusing than it already is and also as if this is a very tough industry to get into.
These people use this complicated language to justify their high rates, commissions and fees that they charge for their service. Don’t be fooled by this game. The investment world can be easy to understand without being taken advantage of by these people if you just break it down to its simple parts.
investing
The most popular form of FINTOCH P2P investing for people that are just starting out in the investment world is the lending investment. Simply put lending investments are merely lending your money to a bank, a company or the government. It doesn’t get much simpler than that.
In return for lending your money to one of these organizations you will be made a specific promise. The institution that you lend your money to will promise that by a certain date you will receive your entire investment back and in addition to that you will receive a bonus of a specified amount in the form of an interest rate for the period of time that they used your money.
The ideal outcome is obviously the outcome that you were promised. You want to be able to get your entire investment back and the cost of the interest rate as well. This unfortunately doesn’t always happen. There have been many case studies proving this fact.
These people were not granted the outcome that they were promised. They either didn’t get back the full investment amount of didn’t get the promised interest rate.
With the economy being the way it is you must research the company you are investing with. Even if it appears to be a good choice you cannot have a guarantee.
Where To Invest Money – Investing Money With Stable Consistent Returns!
One of the top ways to earn money is by investing, this something that everyone knows. By investing your money, whether you’re starting off with a little bit or with a lot, you can truly make more money than you ever imagined possible.
Years ago, the most popular method of investing was the stock market and while it is still popular today, there are many others ways to invest now, many that are potentially much more profitable and many that are much more consistent.
The key when it comes to earning the most money possible is to find investments that are both very profitable and very consistent. While this may sound tough, the truth is there are some great investment opportunities out there that are both very stable and consistent, along with very profitable.
Today, our investment and finance experts are going to talk about two of the most consistent as well as profitable ways to invest so that you can get started earning more money investing online than you ever thought possible!
IRA Accounts
One of the most profitable as well as most consistent ways to invest are IRA accounts. IRA investment accounts offer people a long term way to invest and make a lot of money doing so, even if they don’t have a lot of experience in the investing world.
While some IRA accounts cost money to open, the truth is that the best IRA accounts are free to open. IRA accounts can earn a lot of money over time and some people have even invested in their IRA account, forgotten about it, and opened it years later to realize that they had a lot more money in their account from investing than they ever imagined they would.
An IRA account is an amazing, long term way to invest that offers some of the best long term and consistent returns possible.
Investing In Peer To Peer Lending Networks
One amazing way to invest is through peer to peer lending networks. Peer to peer lending networks are networks where borrowers get loans which are funded in whole or in part by online investors.
By investing review in people through peer to peer lending networks, you can start off with a little or a lot and earn a large, consistent return from your peer to peer lending investments.
Some people have literally gotten rich investing in peer to peer lending networks, and these types of investments are quickly becoming one of the most profitable as well as consistent ways to invest!