Forget About the Highest IRA CD Rates! Look to the Hidden Real Estate Market For Retirement Income

The Highest Rates

Today, the highest IRA CD rates are offered by MetLife in Bridgewater, NJ. They are currently offering 4.5%. Of course, they might not be offering it tomorrow. So, by the time you read this, you might have to take 3%.

Just last week, some banks were offering a higher return. I saw it go up to nearly 5% in some areas of the country. Historically, the average rate is around 3%, so when you see it jump, jump on it.

What kind of "dollar" earnings can you get with the highest IRA CD rates?

Well, $10,000 is the minimum investment for the high rate offered by MetLife. It's called a "5 year-jumbo". So, in five years, your $10,000 would have become $12,523. But, when you figure in the rate of inflation, you have a different picture to look at.

Inflation Is Up

Inflation has been very high lately. It went up to nearly 6% in July 2008. Historically, the average is 3%, interestingly, that's the average rate of return on a CD. So, if the rate of return and the inflation rate are equal, then $10,000 and $12,523 have the same buying power, over time.

So, What Can You Do?

Well, you can't do anything about inflation, but you can stop looking for the highest IRA CD rates and start looking for other options. Most of us would like to retire wealthy. But, today, people are just happy to be "able" to retire at all. That's how poorly their investments are paying off.

The Best Choice - The Hidden Real Estate Market

The picture is bleak in the stock market right now. Normally, I suggest diversification, but I can't do that today. I actually believe that the best choice is to invest in one area of the housing market and re-invest over and over again throughout the year.

You might argue that the housing market is down or investments are too risky. There is a little known or as I call it the "hidden real estate market" that is underserved and mostly overlooked. There are management teams that can take the "risk" out of the equation.

Let's say that you have $100,000 and you get the highest IRA CD rates. After five years, you would have $125,230 and change. If you bought a house with that money and resold it for a modest $10,000 profit, you would have a 10% return on your investment. Already, that's more than double the rate of return.

But, if you did the same thing three times in a year, you would have a 30% rate of return. If you also re-invested your profits, you would end up with a 33% rate of return. The more deals done in a year, the higher your rate of returns and the faster your account will grow.

How to Get Started

You need a self-directed account. Numerous companies offer them. And, if you've never invested in the real estate market, you need some help. But, you can do this. Others like you have given up on the highest IRA CD rates and with unique investment options, they have retired in style.

How To Profit From The Hidden Real Estate Market

Visit http://www.RealEstateIraInvestor.com to find out about using your self directed IRA to purchase real estate hassle free with renters lined up and guaranteed payments the first year. Jefferson Davis is an expert author in the Solo IRA field.