How To Invest In A Roth Ira For Maximum Gains And Returns

Are you plain fed up with the annual 2 to 3 percent returns you are getting on your retirement investments? You'd be surprised to learn that by rolling over to a self-directed Roth IRA you can maximize your returns to over 15%. In order to do so, your first step is to find a brokerage firm with a team of experienced custodians and trustees that can help you achieve optimal results.

The maximum income for Roth IRA eligibility is $116,000 for a single taxpayer and $169,000 for a married couple filing jointly. If you are eligible for a Roth IRA, you ought to roll over to one because the long-term financial benefits are greater. The contributions you make are taxed but once the money is in your account, it never gets taxed again. Furthermore, the only way you will be able to self-direct is by rolling over to a Roth IRA. Self-management is not possible with a traditional IRA.


When it comes to where to invest in a Roth IRA, you first have to understand the difference between traditional IRAs and self-directed Roth IRAs. With traditional IRAs, you pay an investment adviser exorbitant fees to completely control your account for modest returns. With self-directed Roth IRAs, for a small annual fee a custodian does all the work for you and gets you much higher returns but still gives you full control of all of your investments!

As long as your income doesn't exceed the maximum income for a Roth IRA, you would do well rolling over to a self-directed Roth IRA due its long list of benefits. In addition to not having to pay taxes when you withdraw your money after retirement, there also fewer restrictions on Roth IRA accounts. For example, you can be of any age and contribute to your Roth IRA account. With traditional IRA accounts, you can only make contributions until you reach the age of 70. Another perk of Roth IRA accounts is that you can leave the money in your account for as long as you live, unlike with traditional IRAs, which require you to make minimum distributions once you reach a certain age.

When it comes to where to invest in a Roth IRA, your best bet is to have a self-directed account so you can invest in a variety of venues, such as real estate. When investment advisers at a bank make the decisions for you, they tend to invest in venues that are more to the benefit of the financial institution than to you. Generally, they keep most of the profits to themselves and give you only a portion whereas when you control where your investments go, you can invest in venues that benefit you and maximize your returns.

People mistakenly believe that self-directing their IRAs requires a substantial amount of time and effort. The reality is that a custodian or trustee will listen to your wants and act accordingly so you can achieve greater returns without doing any extra work.

So what are you waiting for? Now that you know where to invest in a Roth IRA, don't let your financial institution keep you from receiving higher returns for your hard-earned retirement savings. Go independent by hiring a brokerage and self-directing your Roth IRA account so you can have greater control over your financial destiny.

By: Laurel Cohen

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Laurel Cohen is an active participant of a national network of professional writers who advocate socially conscious real estate investing through the use of retirement vehicles such as IRAs, 401Ks and other retirement assets. For more information, or to get involved, please visit www.ira-investing-guide.com now.