“The Perfect Storm” that is now battering the United States is not a hurricane. No, it’s far more sinister and far more destructive than a mere weather phenomena.
This is a man-made storm. It’s one that had been brewing for years and finally reached it’s peak in 2008 with the economic meltdown and collapse of the housing market.
Unfortunately, this storm will not rapidly dissipate like a hurricane. This is no longer just a banking or housing crisis, it’s a “debt crisis” that, according to numerous economists, may go on for many years.
According to an article in MarketWatch, a Wall Street Journal online publication, Howard Gold is quoted as follows:
“Recessions that follow financial crises tend to be deeper, and the debt problems that caused those crises shift from the private sector to the public sector. Subpar-economic growth makes it harder for governments to solve their debt problems. So, the dark debt cloud may hang over the U.S., Japan and many European countries for years.”
This is not good news, especially for the stock market. The proof is in the volatility of the Dow Jones Industrial Average. One day up. The next day down.
How long this will last is anybody’s guess. But, most seasoned observers will tell you that the market is now intractably linked to the “debt” issue. Logically, it would follow that volatility is likely to be with us for years to come and stock market investors will be in for a wild ride.
But, retirement investors now have a choice. They can ride this thing out and hope that change will come sooner than later. Or, they can take affirmative action to move some or all of their investment assets out of the stock market and into more stable asset investments…like residential income properties.
Yes…I said “residential income properties”. We’re not talking about owner-occupied housing. We’re talking about buying, holding and renting homes that were once owner occupied but are now in foreclosure and owned by banks.
There is a huge difference between the owner-occupied housing market and the investor-owned market. We have written at least 2 dozen blogs over the past several years about the extraordinary opportunity to invest into income-producing real estate.
Armed with a new understanding of the investment real estate market, thousands of retirement investors have moved retirement funds into a Self Directed IRA or 401(k).
Here’s a recent testimonial from one of our Florida real estate investor clients who set up a Self Directed retirement plan earlier this year:
“As you may remember, we recently purchased a couple of properties in Orlando using retirement funds that we moved into a Self Directed Solo 401(k) plan that you set up for us. Our latest opportunity went like this:”
| Single family residential property | $35,000 |
| Closing costs | $2,000 |
| Rehab | $5,000 |
| Total investment | $42,000 |
| Current market value | $60,000 |
| Average rent in area for this size house | $925 |
| Insurance & taxes | $150 |
| Property management fee per month | $95 |
| Monthly Net | $680 |
| Annual Net | $8,160 |
| Cash on Cash return | 19% |
| Appreciation due to value-added rehab | $18,000 |
“Of course, we plan to continue this investment strategy for as long as the opportunity exists and it looks like that will be for a very long time. I’m really glad we took the plunge with investment real estate as an asset to be held inside our retirement plan. Thanks for all your help.”
Safeguard Financial can set up a Self Directed IRA or Solo 401(k) with checkbook control that will allow you to immediately move funds out of stock market based assets so that you can invest into income-producing real estate. The process takes less than 30 days to complete and can be structured to operate in all 50 states.
Contact us by calling 877-229-9763, or fill out the form on our website www.ira123.com.
