Dec 11

What amount of Roth IRA rate of returns would you like to be earning? Single digits? Double digits? Some would say single digits are enough for them, because they would rather invest more conservatively. Some would say double digits, because they want all they can get. I’m on the conservative side, but I also want to earn all I can.

I’m here to tell you I think you can be conservative and still get double digits on your Roth IRA rate of returns. Investing your Roth IRA in real estate I believe is both conservative and will give you double-digit rate of returns.

And a Roth IRA account is just where you want those double digits. If you don’t have a Roth IRA account and you meet Roth IRA income limit, you should definitely see about setting one up. Let me show you an example of how double digits are possible.

Four months ago I bought a piece of property in my Roth IRA account that needed some fix up. I like doing the fix up, so I did the fix up myself, which was basically decorating. New paint and some updated flooring, nothing big, and nothing too expensive. The house had 1,100 square foot, 3 bedroom, 1½ baths. I knew this house would turn around fast, because the area I live in has a high demand for houses under $100,000.

My Roth IRA account paid $72,000 for the property, I had $5,000 in fix up cost, including my labor. My Roth IRA sold the property three months later for $92,000. I was fortunate not to need a realtor to sell the property because I knew a family who needed this house. My Roth IRA account earned 19.4% return on my investment in only three months.

I plan to get that Roth IRA rate of return on the next house I am working on, which is using the same $72,000 Roth IRA money I used last time. My goal is to do that three times in a 12-month period, which will give me a 58.2% Roth Ira rate of returns in just one year.

You may be saying, “That may be fine and dandy for him, but I can’t do the fix up and houses aren’t selling in my area.”

There are solutions for those two problems. My web site tells you how you can find someone that can handle the fix up of the properties for you, and find the properties for you.

I like the double digit Roth IRA rate of returns I get, because all that growth is tax-free. When the government created the tax savings in Roth IRA accounts I jumped on the bandwagon and have been investing in my Roth IRA account ever sense.

In case you’re one who doesn’t have a Roth IRA account yet, the Roth IRA income limit for 2008 is $114,000 for singles, head of households and married filing separately if you haven’t lived with your spouse any time during 2008. The Roth IRA income limit for married filing jointly is $166,000 for 2008. Roth IRAs are the best option for you if you expect to be in a higher tax bracket after retirement because the money is taxed the year you put it in, not at the time of withdrawal.

After reading this if you haven’t opened a Roth IRA account yet, and meet the Roth IRA income limit, be sure to get that done for 2008 soon. And if you like the Roth IRA rate of returns I am getting, don’t forget to check out my web site. It’s never too late to start earning double digits.



Robert Ruby invests in Real Estate and researches the best way to find capital for his investments. He buys property with no money down, and also uses the assets in his 401K and IRA accounts to invest in Real Estate. Go to his website to find out more about a company that has proven itself over and over again to help grow wealth.

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