Don’t Stop Saving & Investing

Don’t let the panic of Wall Street and the uncertainty of the economy stop you from saving and investing with your IRA or 401(k). Like real estate, which is expected to show some signs of rebounding toward year end, the market will eventually rise. It may be awhile and no one has a crystal ball to predict exactly when, however, we can position ourselves to be prepared so we can prosper and use common sense to protect our individual retirement accounts. Take these steps to prepare, prosper and protect your IRA.

Educate yourself

We must take control of our financial future. Your financial professional won’t be around forever to take care of you financially. The only person you can depend on to take care of you is YOU. Educating yourself on the risks and rewards of an investment will prepare you to know what to do and what to expect when the right investment opportunity comes along. It’s better then going in blind, especially in light of the recent Ponsi schemes that are out there.

Diversification

Don’t put all of your eggs in one basket. A truly self-directed IRA gives you the ability to invest in alternatives such as real estate, water, wind, and other investments that could help your IRA prosper on a tax-deferred or tax-free basis. I am still a firm believer of real estate for my own portfolio but that does not necessarily mean that is the only investment I would make. Think about what you value and have at least one investment that matches your values in your portfolio. For example, green investing. If you are a believer in Green you might consider investing in solar energy.

Cash accounts must be protected

You need to protect your IRA. Make sure any cash you have with an administrator or custodian is insured. With the uncertainty in the markets and the banking industry especially hard hit, not all custodians or administrators are equal. 

When you are prepared and when you protect your assets, you have a better chance of prospering and financial peace of mind.

Tags: 401k, education, Investing, ira, real estate, saving money