Saving for retirement is something that's on the minds of every American. Other than Social Security, the most common retirement account is an IRA. Through this financial vehicle, workers can grow their wealth tax-free. This enables savings to compound over time, making it a beneficial long-term investment option.
Many individuals don't like the volatility in the stock market and aren't keen on staying up to date on the interest rates of other investment products. That's why many are starting to use their IRAs to invest in land - a long-term asset with a finite inventory.
Investing in land allows individuals to put their money into an account they feel is much safer. So how do you get started?
The first step to making sure your IRA is in good hands is to speak with a financial planner. If interested in using a self-directed IRA for a land investment, you should contact Mossy Oak Properties. Brokers at Mossy Oak Properties can give you the best advice on different land options and how your money can be put to good use. Further, Mossy Oak Properties reps work with trusted IRA providers who have experience dealing with the exact investments you seek to make.
What to know
If you use your IRA as an land investment tool, then you cannot use the property for personal use. This means you can't live, hunt or grow crops on the land - it's strictly an investment. After you begin receiving benefits from your IRA upon retirement, you can, however, distribute the property to yourself.
Just like all investments, you should be prepared to adjust your portfolio when necessary. You should utilize your self-directed IRA with an exit strategy in mind. It's important to know that land is a traditionally high-yield investment so a long-term strategy is most beneficial. Likewise, you'll need enough cash on hand for the initial deposit.
Questions to ask
You'll likely have plenty of questions regarding IRAs before you make a final decision. But you should also be able to answer a few personal questions yourself. For instance:
- What kind of property type am I interested in? Rec? Ag?
- Do I need a money manager?
- Is property ownership important to me and my retirement?
Once you have confidence in your investment strategy, you are better able to make informed decisions. Contact a Mossy Oak Properties rep today for up-to-date advice on how you can use land to your advantage.