Real Estate or Stock Market?
Are you aware the IRS allows you to use your IRA to purchase investment real estate?
Does it make sense? Let us examine the annualized returns for past decade, 2001-2010.
Stocks (S&P 500) 1.4%
MSCI EAFE Index 3.5%
US Equity (Russell 3000 Index) 2.2 %
Bonds (Barclay’s Capital Bond Index) 5.8%
Real Estate (Private Non REITS) 7.4%
Real Estate (NAREITS) 10.8%
Real estate investments may be an option to consider. The current unemployment rate, credit
crisis and possible tax increase may make for a rough ride in the stock market as we experienced
in the past decade. Over the past 10, 15 & 30 year periods, the risk for real estate has been
approximately 50% of equities. Real estate has had the highest risk adjusted returns among
asset classes. Income from real estate has been triple the S&P 500 and 20% higher than the
Barclay Aggregate Bond Index. Data from 1990-2010 supports a percentage of real estate in
one’s portfolio can increase return & reduce risk. Real estate can offer diversification within its
own asset class through unique property characteristics. The current rate of foreclosures have
lead to an increase in rental demand.
Is it time to reallocate a portion of stocks, bonds or mutual funds into real estate? Most
financial experts agree diversification is the key to long term financial success. Let us help you
diversify & increase the long term value of your IRA by implementing this overlooked strategy.
Let us put our 30 years in the real estate industry to work for you. We can facilitate the entire
process. There are endless opportunities for novice and seasoned investors.