Monday, May 7, 2012

5 Ira Guaranteed Interest Options You Need Know About To Boost Retirement Earnings

Looking for IRA guaranteed interest? You have a number of options that guarantee a return on your investment. The question is this. How much do you want to earn?

As much as you can, of course, but how much can you reasonably expect to earn? That really depends on your investing choices.

Option #1 - Certificates of Deposit

A bank CD offers IRA guaranteed interest for a specific period of time. Currently, the average rate of return on a five-year IRA-CD is 4.01%.

Let's say that you have already started your nest egg and you have 0,000 to invest. Since, your money is protected by the FDIC; you feel it is safe in a bank. So, after five years, you have earned an additional ,000 in interest. What are your other options?

Option #2 - Treasury Notes, Government Bonds

Sadly, the maximum you can earn here is between 2% and 4%. It is IRA guaranteed interest and it is the safest option, since it is backed by the US government. It's just that most people need to earn more, in order to fund their retirement.

Option #3 - Stock Market

Many people end up investing in the stock market, under the recommendation of the company that manages their funds. Advisors and analysts look at historical data that may or may not be relative to you, today. It's all a gamble. There is no IRA guaranteed interest in the stock market, regardless of what the analysts say.

I have talked with several people of retirement age that simply do not afford to stop working. These are not people that failed to plan ahead. They saved and invested. They talk to investment advisors. They had 401Ks and other retirement accounts. But, they all listed to the traditional advice an put their money in the stock market.

By the time that you read this, things may have settled down in that market, but at the time of this writing, the stocks were doing a crazy dance. Last week, there was a historical plunge on Monday, a partial recoup on Tuesday, and on Wednesday it went up and down all day. People worried about their future wealth were biting their fingernails. There is another choice.

Option # 4 - Real Estate

You might not think that the housing market could guarantee a return on your investment. You are probably thinking what if the home value falls. Well, for the sake of argument, let's just look at what you can do in this market.

In the CD example above, you took 0,000 and put it in the bank to earn 4.01% interest. If instead, you had taken the money to buy a house and resold it for a small profit of ,000; you earned 10% interest, more than double. Let's say that you were able to do this three times in a year, the return on your investment would be 30%.

Option #5 The Hidden Real Estate Market

There is also a hidden real estate market the new and seasoned investors are using to quietly rake in substantial gains. It's a way you can buy real estate hassle free, with renters lined up, with guaranteed payments for the first year. While it's not guaranteed interest the returns are fantastic and with relative safety it's worth looking into.

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