Why Invest in an IRA If You Need Money NOW?

Here’s a take on retirement planning from a youngster with a full head of hair and his whole life ahead of him:

When I first began investing in real estate, I was 22 years old and I wanted to make money for two reasons: 1) To finish paying for college, and 2) To generate enough cash and equity to be able to live off my passive investments as soon as humanly possible. This meant that I needed access to every dollar I earned (as well as dollars I borrowed) in order to buy more houses, create more wealth, and get to the point where I could retire early.

Like many of you, I heard how amazing self-directed Roth IRAs are for real estate investors who use them to invest in real estate and grow their nest egg by leaps and bounds, tax-deferred. But every time I came close to actually getting started, this little voice would pop up in the back of my mind:

“I need my money NOW, not when I’m 60!”

I rationed that if I were going to wait until I was 60 to retire and take money out, then a tax-deferred retirement account made sense. But since I planned on retiring and living off my investments at the age of 25 or 30, I figured, “What’s the point?”

Here’s four points I should have considered:

Point #1: Why not? The opportunity to have at least a portion of your hard-earned money safe from the clutches of the government is too good to pass on. When no taxes are paid on interest earned, even small amounts of savings can add up over time. If you want to use as much of your income as you can to live on, or to do deals, consider investing at least a small percentage of your income or profits in an IRA.

What if you put a mere 1% of your income into an IRA account? If you earn $60,000 per year and invest only 1% of it, that is only $50 per month-not something that is going to have a major immediate impact on your ability to buy more properties. But it will add up in 30 years if you can earn at least 10% per year, which for creative real estate investors is low.

After all, aren’t we in a business where you can wholesale a deal and make $5,000 in 15 days with $0.00 of your own to begin with? If you can make an infinite return, then trust me, you can earn an ROI of at least 10% per year. So why not sock away some savings or at least do one deal in your IRA? I think the chance alone to legally thumb your nose at the IRS is priceless.

Point #2: Diversify a little. Having success with high-return real estate investments does not mean the principle of diversifying is not applicable to you. Even the world’s wealthiest people diversify their investments. They don’t just keep reinvesting 100% of their money in one thing, because what if it stopped working and you lost it all?

You could separate your IRA funds from your other savings and investments and use them exclusively for some other kind of investment, like high-interest loans, buying liens and judgments, or even (gag me) mutual funds.

Point #3: You can still borrow it back. My rationale for not putting money in an IRA in order to have it available to use for deals does not add up when you consider that you can use IRA money to do deals. Of course, there are rules about how it’s supposed to be done appropriately so as not to be considered self-dealing, so follow those, of course. I’ll leave that subject to the IRA experts.

Your money will still available for you to use for deals with the added benefit of growing your profits tax-free until you take them out. The only downside is that it won’t be available to use for anything else, like paying your bills. For this reason, I recommend having adequate savings to cover you in the event of a temporary cash crunch.

Point #4: Forced plans force success. The only time I’ve ever consistently and effectively saved money or paid down debts over time has been when it’s an automatic plan of some kind.

When I decided to pay off my car loan, I just couldn’t bring myself to part with a check for $6,000 all at once. For two years, I kept saying I would do it in one lump sum, but never got around to it and kept waiting for a better time which never came. So I set up automatic payments with my bank, who sent a check for 1/12th of the balance each month until it was paid off in a year without me even thinking about it.

My concern is that many people, like the old Me, keep putting off using an IRA until “someday” when they will begin using it to invest in all of their deals. I prefer doing it in an automatic, consistent method that does not rely on you remembering to put aside money, and is done a little at a time.

And I believe it’s wise to keep your investment money separate from your other funds. Do you remember Mark Haroldsen’s story in Financial Genius about the shame of “dipping into your capital?” What better way to keep that from happening than to store it apart from the rest where you won’t be tempted to squander it?

In Conclusion

For these reasons, I think it’s smart to use a Roth IRA to invest in real estate (or anything else that you can), even at, nay, especially at a young age. The younger you are, the more you have to gain by having all of your investment returns working for you rather than for the government.

The years are going to go by whether or not your investments are growing tax-free, so why not do it? If you haven’t taken advantage of this incredible financial strategy, I recommend doing it now because “someday.”

Home-Based Business – 3 Simple Business Methods to Work From Home

Owning a home-based business and working from home is the ideal business style for most of the people who wish to achieve their financial freedom as well as to enjoy a carefree lifestyle. This is the most sought-after way to escape from the rat race and say good-bye to their bosses. In other words, they don’t have to worry about getting laid off by the companies that they are working for when the economic is not doing well anymore.

However, there are still many people who never realize this dream because they often relate Internet business with those types of Internet companies that were set up rapidly during the “Internet boom” and then collapsed when the “bubble” was burst. During the Internet booming time, a lot of generous investors were willing to support the big companies. They invested heavily on campaign advertising and fanciful technology.

Fortunately, it is far easier to start a home-based Internet business nowadays than before. Neither you need to worry about not getting any investors to invest in your home-based Internet business nor need to worry about not having the money to start up your Internet business.

I’m going to show you the three simple business methods to work from home by starting a home-based business :

Business Method #1 – Affiliate Marketing :

Starting a home-based business with affiliate marketing is the easiest business method to begin with. The nature of doing affiliate marketing is to promote other people’s products and earn a commission when you make a sale successfully.

Affiliate marketing is one of the easiest business methods because you don’t have to create your own product. You can find the merchants’ products to promote. You can also create your own website, get an autoresponder system set up and build a relationship with your prospects. Some of the Internet marketing gurus even tell you that it is not necessary to have your own website and autoresponder because you can use pay-per-click advertising to promote your products.

Business Method #2 – Information Product :

An information product belongs to the digital product business that is the second easiest business method to start a home-based business. You can create your own information products in the form of electronic book (eBook), software or other types of quality content for your customers to download to their PCs directly after paying you via the payment processor.

You will like this type pf business method if you are good in generating product ideas, enjoy authoring your own eBooks or software and are willing to handle the customer service requests on your own.

Business Method #3 – Auction :

Auction is the third easiest business method to start a home-based online business. Auction sites allow you to sell physical as well as digital products. The most popular auction sites are eBay, uBid, Yahoo! Auctions and so on.

Auction business method is a good way for anybody new to online business to start with. However, auction has its drawback because it requires more work to run an auction business. You are required to manage multiple auctions per day if you are into it to make money. Furthermore, you need to handle the product delivery, inventory and customer service.

The three simple business methods to work from home have been listed clearly for you. You can pick one of the three business methods that interest or suit you the most to start your home-based business.

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How to Find a Successful Internet Business For Sale

As the number of Internet users’ flock around their machines the time is just ripe for the Internet businesses to flood the market. The Internet is the storehouse of in-numerous opportunities and provides a sea of options for many to earn quick bucks by engaging themselves in lucrative Internet businesses. Statistics reveal that Internet businesses are roping in more and more profit with each passing day.

Buying Internet Businesses and selling them is a lucrative option. The transactions are easily done through the web and the money flowing in is also quite hefty. Internet business can be started without much investment. You only need a computer and the Internet to start off your business. You do not need a website to be successful in online business. Buying Internet Businesses should be done carefully. You should do a thorough research on the offers available on the net. You have to list down the most lucrative ones. You can also take professional help to guide you through your purchase.

Mostly websites with mass traffic are the most beneficial ones. They are already popular and hence you can be able to establish your business quite fast. You can be easily deceived by the heavy prices charged by the owners. Professional help like brokers will provide lucid details about the best buys and the best prices by steering clear of fraud and piracy. Even without the brokers you can get abundant information online where a lot of companies advertise the sale of their websites.

You can also consider other options like flipping websites. There are lots of website on the internet which have not been visited or attended for quite sometime. You can purchase such websites and mould them into your own style and likings. There are websites which require no further updating or updates itself automatically. These websites are very useful as there are no further hassles in maintaining the site whereas you could extract the maximum utility from them. Thus you have to only make an initial investment and there are no further investments.

You can also purchase gaming sites with arcade games installed in them. They are sure to lure a lot of enthusiastic users as well as it is easy to maintain such sites. Once the sites are launched with the games loaded in them, you need not maintain your site unless you want to make it more interesting by adding newer games.

You can also buy Internet business from online free classifieds. There are advertisements of various websites on sell along with their details. You should grab hold of a Spam free website for a lasting effect. The classifieds offer interaction space between buyers and sellers, which is beneficial for the bargaining on the purchasing price. The classified owners are answerable to their dealings and you get the best prices for your businesses.

Your purchase should be unique and all terms and conditions should be thoroughly attended. An Attractive website is sure to take you places and help you to establish your business and make it popular overnight with a dense traffic.