Self-Directed IRAs: Establishing an Investment Strategy

by Self Directed IRA Advisor

Checkbook IRA accounts, also called self-directed IRA accounts, provide many options for account holders to increase their portfolio value through investing in real estate. As real estate investing is the number one way to make money in the U.S., it’s no wonder that many want to capitalize on this.

Real estate investing is a very diversified field, which can stymie some investors when it comes to determining how to invest their money. It needn’t be at all, however. Asking yourself a few questions will help you to quickly put together a real estate investment strategy for your self-directed IRA account funds.

3 Questions to That Help Formulate a Real Investment Strategy

Investor Personality: As in, what type of investor are you? Do you like to take chances, are you super conservative. Or, do you fall somewhere in between the two. Knowing your investor personality will guide in selecting the most appropriate investment that won’t cause you constant worry and stress.

How Far Off is Retirement? Becoming crystal clear about this question will help you decide what type of real estate deals you want to invest your checkbook IRA funds in. You might think about investing in properties to rent, for example, instead of going for the quicker return of buying, renovating and flipping properties.

What type of income do I want/need during retirement? Many don’t actually sit down and compute the numbers to see how much they’re going to need overall to support a retirement lifestyle that might last 20, 25 or 30 years or more. The answer to this question will in essence tell you what can and should invest in to get the biggest and safest return on your investment.

These are just three of the questions you will need to ask and answer before settling on an investment strategy for your checkbook IRA account. Albeit, they are three of the most important.

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