IRA

Years ago, people kept their money in one location-usually under their mattress! People did not trust banks and sometimes people hid their money in locations in their home. Crazy to think about isn’t it!

Nowadays, people have money in countless varieties of funds, accounts and investments. With so many choices, people are generally confused about which fund or account will work best for them. If you put your money in the Roth IRA and you use it, does it earn any interest?

This has got to be one of the most common questions!

Let’s talk about it. If you put your money in your Roth IRA, and unless you do a deal to it, does the money earn any interest?

If you put it in a money market account, it isn't going to get you enough interest to matter, a percent to half-percent, whatever the money market is paying.

Now, if you are going to use a Roth (anytime you put money or transfer money into your Roth IRA) you are not accomplishing anything unless you then do something with that money to get it out working for you.

I know this sounds crazy-and let me guess-it probably is killing you knowing it is sometimes sitting there for few months while you are looking for deals. Have you found yourself in this situation? That means you get to be a little bit more aggressive finding deals if it is sitting there for a few months.

Remember, there are all kinds of things you can do with cash. Think about the possibilities! Maybe you are not looking at your entire situation, or maybe you are not looking at all of your possibilities. Are you telling me there is nobody in your area you can make a loan to or there are not any defaulted mortgages you can buy? I find that hard to believe (especially in today’s’ market). You cannot drive down the street without seeing a for sale sign. And let’s face it; foreclosures are at an all-time high. There are plenty of places to put excess money.

If you are looking to place the money somewhere, you can try a Heritage Fund. As long as it is at least $100,000.00 that is a nice comfortable place for it.

There are endless possibilities to having excess money. I am not telling people not to invest, but a Roth IRA can tie up your money, and who wants their money to be inaccessible when they need it to purchase homes on a quick turnaround? Look at your options and decide which route is best for you and best suits your needs.