Your individual retirement account, or IRA, is the key to enjoying your golden years. Whether you pursue a traditional IRA with tax-free contributions now or a Roth IRA with tax-free payouts later, this investment strategy will keep money earmarked for your retirement so that you don’t find yourself out of the workforce with nothing left for the future. Most IRAs rely on a diverse blend of stocks, bonds, and money-market investments, with the balance shifting from stocks to bonds as the time for big earnings decreases and a greater sense of certainty is necessary. But in addition to these tried-and-true components of a retirement fund, there are novel and dynamic approaches you can take, as well, to diversify your portfolio, expand your earnings, and maybe even have a little fun. Here are some of the most effective ways to grow your IRA so that you can enjoy a comfortable and low-stress retirement.
While more conventional IRAs have limited options for investments, a self-directed IRA opens up a world of opportunities from the physical to the virtual. One such avenue for investment is in cryptocurrencies such as Bitcoin. Cryptocurrency can be a big gamble—its erratic swings in value may be enough to spook even the most unflappable investor. However, a little crypto can go a long way, and a small investment that enjoys a big boost in price is a fine way to diversify a colorful and ambitious self-directed IRA.
No investment strategy guarantees returns, but if you have the principal necessary to make a real estate loan, hard-money lending can result in considerable interest or assumption of collateral. Hard-money loans are popular with house-flippers who cannot secure traditional financing through banks or other lenders. Owing to the significant risk a hard-money lender takes on and the last-resort nature of such a loan, lessees will have to offer up significant collateral and pay a high rate of interest over a short period—rarely over three years. Whether through the collection of interest or by acquiring real estate that your lessee couldn’t pay off, hard-money lending can pay off for you.
On the other end of the spectrum from the intangible and unknowable cryptocurrency is the coldest and hardest currency of all: precious metals such as gold, silver, and platinum. Thanks to the unwavering value of these metals, these types of investments are among the most effective ways to grow your IRA. Confident in the everlasting value of gold, you can invest wisely and safely in precious metals as a reliable and lucrative means of diversification.