Is there IRA guaranteed interest? Money markets, certificates of deposit and government bonds are insured by the federal government. As long as they are allowed to mature, they will earn money. How much? That’s a different question, entirely.
How much you can earn depends on several factors. The amount you have to invest is one issue. Some banks offer “jumbo” CDs for periods of five to seven years. Currently, some are offering as much as 5.5% for a minimum deposit of $100,000.
That would be considered IRA guaranteed interest, as long as you don’t decide to rollover or run into a situation that requires you to withdraw the money early. For smaller opening balances, the average rate of return a five year IRA CD is 3.81%. The average rate is actually high for a “non-IRA” account. Currently, that average is 4.13%.
Government bonds and money markets may be IRA guaranteed interest, but the average rates of return on those investment types are even lower. You could actually earn more by opening a standard savings account.
There is never any IRA guaranteed interest in the stock market. There are always ups and downs. Lately, there have been more downs, than ups. Many of the stocks will likely recoup in the long term, so don’t go and sell all of your holdings, today. But, if you are looking for faster and better returns, you need another choice.
Self directed accounts are becoming more popular, because they allow investors to use all of their options. The tax law prohibits only a few types of investments; things that are difficult to liquidate, such as antiques, things that are hard to establish an accurate value for, a stamp collection for instance, and things that may lose their value suddenly and quickly, such as land in other countries.
But, most people only think of the traditional stocks and bonds. Real estate is a choice that is often overlooked. Any investing expert will tell you that real estate is always a good choice, but sometimes it’s hard to come up with the money when you see a good deal.
If you have un-invested cash in your retirement account, you may be able to snap one up, when you see it. One investor that I know of was able to buy four hurricane damaged houses for less than $40,000 total. That’s an average of $10,000 each.
He was experiences in rehabbing houses and after repairs were made, he was able to resell each property and the profit on each was at least $100,000. Basically, he turned $40,000 into $400,000 in about a year’s time. There is no other way that I know of, to see those kinds of returns.
Of course, most deals are not quite that profitable. You may only make say $40,000 in a year’s time. You might not make anything at all, but you probably won’t see your account’s value fall. It’s not IRA guaranteed interest [http://www.private-money-and-ira.com], but it could be the right choice for you. If you want to try it, just get a little education, before you begin.
Posted in Government Bonds | 
Tags: Accurate Value, Antiques, Certificates Of Deposit, Government Bonds, Investment Types, Jumbo Cds, Several Factors, Ups