Why the Highest IRA CD is a Waste of Time

What if I told that searching for the highest IRA CD rate is a waste of time? Due to the fragility of our current economy, many people are ditching stocks and investing in CDs because they are safe and stable. The problem is that even the highest CD rates are pretty pitiful in comparison what other investment venues offer.

Currently, the highest IRA CD rates average at a little below 4%. These low rates paired with inflation mean that you lose money in the long run or at the best break even. To put it simply, if the rate of return and the rate of inflation are equal, you end up breaking even. The problem is that inflation rates have been very high lately. In July of 2008, the inflation rate reached 6%.

Normally the best line of action would be to diversify your investment portfolio and invest a portion in the highest IRA CD as well as other venues but with the way the economy is looking your best bet would be to invest in one area of the housing market. Real estate is a highly stable and lucrative investment venue that is largely untapped.

Many people mistakenly believe that unlike the highest IRA CD rates, investing in real estate is too risky. The truth is that real estate is very stable. Unlike stocks, which constantly fluctuate in value, the value of real estate tends to go up over time and there are companies set up to help you self-direct your IRA account and increase your rate of returns dramatically.

So instead of looking for the highest IRA CD, your first step should be to roll over to a self-directed IRA and invest in real estate. Look for a company that will provide you with a custodian who can help you manage your account. Unlike with traditional IRAs from banks, account custodians for self-directed accounts will act in your best interests and choose investment venues that benefit you most. In fact, there are companies out there that can guarantee to double your returns or pay the difference.

The highest IRA CD rates are pitiful in comparison to the return rates of real estate investments. Furthermore, real estate investments are very safe because they are insured against the most common forms of loss like flood, fire, and other natural disasters. The same can't be said for other investment venues like stocks, which are far more risky.

Your goal? Take this information and start learning about how to roll over to a self directed IRA instead of wasting your time with the highest IRA CD. High rates of inflation paired with low return rates make CDs obsolete. On the other hand, self-directed IRA accounts with real estate investments are just as stable as CDs but far more lucrative. Invest in real estate if you want to maximize the returns on your retirement savings and work towards a more secure financial future.

Ed Gosselin is an advocate of IRA investing in Real Estate as a means of diversifying your portfolio, while maximizing returns. In the interest of disclosure, I am not a tax or financial consultant. I am however fascinated by IRAs and sharing my research with other readers. You can read more about the benefits of IRA investing by going to http://higher-ira-returns.com