North Carolina is a state full of people who work hard to earn their livings. You don’t want your hard-earned money going into worthless investments. Two popular investment options are real estate and a Roth IRA. Here’s a comparison between these two investment strategies and a third option to consider.
Being a real estate investor can involve buying, selling or investing in properties. Real estate investing is a great way to receive a steady income if done well.
Choosing a Roth IRA
Whether retirement is on the horizon or decades away, it’s smart to have a Roth IRA. This account is a way to accumulate money in a tax-free account. Once you reach six months after you turn 59, all of your withdrawals after this point are free, provided you’ve had this account for at least five years.
However, you can’t place tangible goods like real estate into a Roth IRA. Other drawbacks, especially if you earn a lot of money, are the limits involved with Roth IRAs. If you earn too much money annually, you’re ineligible for this type of account.
The flexibility of a self-directed IRA
A self-directed IRA is a great choice for people who do a lot of real estate investing. This account lets the owner choose whether they want to set it up as a Roth or traditional IRA.
As you can see, there are many ways to invest your money. Before investing, consider speaking with someone qualified to give you investment advice. Rushing into an investment strategy without checking out all your options can lead to a lot of lost money.