Real Estate Vs. Your 401K
All of us would like to think we are going to retire someday, and hopefully, it will be comfortably. To that end we are encouraged to contribute to a 401K. Unfortunately, the growth rate of most 401K accounts will not offer us the retirement we anticipate. As an example, even if you were to put $250 a month into a Roth and get a modest 3.5% return on your investment, the return most likely would not be enough for a comfortable retirement.
So, what are the options? If you have a self-directed Roth IRA, you could invest in hard money trust deeds that would minimally yield 10%, putting you in a much better position for retirement. Yes, these investments come with a much higher risk, but the real estate market over the long haul has always proven a safer investment than most others. Additionally, it is tangible and will always carry value so ensuring you have decent equity at the get-go for each investment, this will serve for a safer investment overall.
Hard money trust deed investments allow you to enjoy the advantages of real estate ownership without the inevitable landlord problems and hassle. This type of passive investing comes with a professional lender responsible for vetting prospective borrowers. Additionally, using a loan servicing company to collect mortgage payments and ensure payments for taxes and insurance, eliminates virtually any intervention on your part. In the end, you are left with a retirement account that is growing at a much faster pace than any 401K.
Sun Pacific Mortgage, a family owned and operated business since 1988, offers hard money trust deeds. These opportunities are regularly emailed to our investors, with enough information to make an informed decision regarding risk and profit. If you are interested in turning your slow-growing 401K into a turbo charged retirement fund, give us a call at 707-523-2099!