Interest rates are still at historical lows. The U.S. government is printing a lot of money and purchasing bonds at an alarming rate in an effort to stimulate the economy. We all can debate whether or not these strategies will work or if they are just putting us in greater risk of worse things to come. John F. Kennedy once said “Ask not what your country can do for you, but what you can do for your country.” My spin on this is “what can my IRA do for my country?” Yes, I know it is not our personal financial responsibility to improve the State of Arizona’s economy but the truth is that your investment activity does have a direct impact on the overall health of the economy. The economy and companies grow when we consume goods, not when we save money. It’s an interesting catch 22 for the government that can at times lead them to send mixed messages. On one end they want us to save money, be fiscally responsible and make more informed financial decisions, but on the other, they need us to spend freely and fuel the economic engine. Due to Covid, the current pandemic guidelines and environment have only made it harder for Americans to spend and invest their money freely. Well, my suggested and controllable response is to fuel the economic engine by investing in private companies that are poised for growth, rather than by spending your way out of the problem. As companies obtain the needed capital to invest in better technology, digital service experiences, training, equipment and people, it improves the local economy, decreases unemployment rates and leads to a sequence of positive factors that strengthen economic statistics on a comprehensive basis. I am sure you are aware of at least one private local company that you believe has a bright future. It could be time to inquire about their capital needs and explore whether an investment from your Vantage Self-Directed IRA could provide a win-win situation for both parties.
AZREIA members have the ability to meet fellow members and companies that are seeking capital to grow their business. Providing private lending notes to a fix and flipper, for example, could enable that company to increase
their volume of properties, hire more contractors, purchase more materials at Home Depot, etc. Additionally, as a real estate investor living in a red hot “seller market” with limited inventory, perhaps you can identify a profitable investment niche that fulfills a major need in the market that demands investor support. There is always money to be made during times like these, so be sure to not overlook or misunderstand the critical role your IRA savings can play in funding those timely opportunities. There is a positive trickle effect to your IRA investing! It could be time to inquire about their capital needs and explore whether an investment from your Vantage Self-Directed IRA could provide a win-win situation for both parties.
To learn more about Real Estate IRAs, please visit www.VantageIRAs.com/
by J.P. Dahdah