Does Your “Investment Personality” Line Up With Real Estate IRAs?Posted on September 16, 2015 by
“Investment personality?” you might ask. “What’s an investment personality? I want to make more money than I have. That’s my investment personality.” Okay, we’ll admit it: the idea of an ‘investment personality’ might not seem to have a lot of merit at first—until you realize that you do have a set of clear priorities and preferences based on your experiences. To one person, Real Estate IRAs—for example—might fit perfectly in line with their investment personality. For someone else, a Self-Directed IRA of a different sort might be more appropriate.
The question becomes: what exactly is your investment personality, and how can you know it? Let’s look through some basic questions to find out exactly what yours is – and whether or not Real Estate IRAs are the right match for you.
Basic Investment Personality Questions: A Short Quiz
Your investment personality might not be the same as your normal personality. Some people who find themselves perfectly risk-averse and introverted in their personal lives might enjoy a riskier approach to their investments…and vice-versa. Let’s take a few moments for some questions that may just reveal some things about your investment personality:
- What do you value most about your investments? “Having money” seems like the easy answer here. But dig a little deeper to find out the true core of your investment beliefs: do you want money so you can have security for your family? Do you want money so that you can enjoy retirement to the fullest? Do you want more money so you’ll have more freedom in your daily life? Do you want more money so you can leave your family with a bigger legacy after you’re gone?
- How much risk are you comfortable with? Are you the kind of investor who would rather watch their nest egg grow more slowly if you can have more certainty that it won’t be as susceptible to risks? Or do you like mixing in a little risk to have a more aggressive portfolio? Are you the kind of person who would risk it all for the chance to earn a lot more?
- What kind of retirement future do you value for yourself? Some people simply want the confidence that they’ll have a regular income of some sort. Others want a large enough portfolio that they won’t have to worry about any of their expenses. Granted, most people would take “all of the above” in most cases…but if you think about it, you might find there’s an answer best suited for your individual goals.
Are Real Estate IRAs Right for You?
After you’ve taken some time to answer the questions above, you should have a clearer idea of what kind of investments are right for you.
Where do Real Estate IRAs fit into all of this? Real Estate IRAs tend to be great investments for the following personality types:
- People who value a consistent income
- People who like a hand’s-off approach to real estate
- People looking to leverage their retirement assets
- People who don’t trust the current retirement system in place to provide a healthy, consistent income
- Investors looking to protect their real estate assets in some way
If any of the above sound like you, it might be time to consider that Real Estate IRAs might just be in your wheelhouse. Of course, there are plenty of options and regulations to consider before you start out—but if you want to learn more, you can always contact us at 1-866-7500-IRA(472) to find out whether or not your investment priorities truly line up with Real Estate IRAs and the advantages they afford you.