February 25, 2008

Invest your IRAs into direct participation mortgage programs

Take a look at the news stories published and broadcasted on television channels and newspapers on retirement solutions and retirement investment plans. Most of them concentrate on middle and higher income group, who can in any case retire with enough income to sustain a healthy retired life. Even if you look at the advertisements published by different companies, they mainly concentrate on middle and higher income group.

But what about people from lower income group - those who cannot save enough every month or cannot take the risk of investing self directed IRAs into stock market!

One of my friend said that the so called experts and advisers are not interested about them for their low investment profile. Perhaps they think that those people can do well with their small savings, company sponsored pension and income from social security.

As they have fewer amounts to invest and are able to take no risk, the best solution for them could be to invest on real estate. You might be laughing as you read that I am asking them to invest on such a high volume zone!

It is not impossible. There are some organizations where people invest on real estate as a group. For example you can look for a direct participation mortgage fund where you can buy as many stocks as you want and afford to buy over time – as if you are buying some stocks of a corporation in the share market.

The collected amount then goes into property buying or development or other real estate investments. However the best things about these groups are that, you can participate in the decision making process and you do not need to invest on a property if you do not feel like investing.

Another important aspect of this kind of investment is that you can invest for shorter period of time like six month or one year.

So is it impossible to make smaller but high yield investment by people from lower income group!

Filed under Business by Sandi

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