Having a real estate IRA is a growing trend, but is it the right call for the economic state of the economy today? The economy has certainly has had its ups and downs over the past few years and while some say we are headed for recovery still others think we are headed the other way.
You might find that you have a 401(k) in need of being rolled over and you might be considering rolling the funds into a real estate IRA. By looking at all the pros and cons of the 2012 economy you can see for yourself whether or not a real estate IRA is right for you.
Cons
Obviously one of the main benefits of having a real estate IRA would be so you can invest in real estate. This is a main concern with the economy though. Even though the housing market has come down by as much as 50% or more in many areas around the country, the damage may not be done. Should you invest too heavily in real estate and have little time before you retire then you could get stuck with investments that don’t perform to your liking.
With a real estate IRA you have total control over all the investments. However, with a turbulent economy that might mean you don’t desire such control and might rather defer that control to those more attuned to the economic climate.
Pros
Regardless of whether or not you are of the opinion of a healing or ailing real estate market, you will at least be able to invest in actual real estate with a real estate IRA. With a more standard IRA, the best you could do is own stock in home building company or perhaps invest in real estate investment trusts, or REITs.
Additionally, a real estate IRA will allow you to invest in much more than real estate. Just as this total control might be a bad thing if you don’t want it, having this kind of control if you do want it is pivotal should you find the kind of assets you are interested in acquiring for your IRA and are looking to pounce on them quickly. This opens you up to many investment considerations for a volatile economy.
Up to You
In the end it all comes down to you. The economy of 2012 remains turbulent, but really the economy can go up and down on a moment’s notice for a number of factors. There really is no telling what the economy will or won’t do and the most important thing to consider is whether or not you want total control over your investments regardless of what the economy is doing.
Click to read more about investment considerations for a volatile economy.
