4 IRA Investing Tricks that Successful Investors Use

IRA investing can provide you with a great way to build up money for retirement. Contributing to an IRA is only part of the solution. You have to be able to invest successfully as well. Here are a few IRA investing tricks that successful investors use.

1. Invest in Your Own Company

One of the best tricks that you can use to quickly build up the money in your IRA is to invest in your own company. With this investment strategy, you will be able to make money in a variety of different ways through your business and then pass the profits to your IRA. This could potentially provide you with a fantastic return on your investment. There will be no tax liability on the money that goes back into your IRA.

In order to set this type of scenario up, most investors will start a limited liability corporation and then use money from their IRA to invest in the LLC. Since you are in charge of the LLC, you can invest in a variety of different things by simply writing a check. This gives you many more options for investment as well as a very simple investment process.

2. Market Neutral Funds

Another strategy that many successful investors utilize is to invest in market neutral funds. Market neutral funds are mutual funds that strive to provide returns regardless of what happens in the stock market. These funds invest in things like commodities, foreign currencies, real estate, and other things that are not related to the stock market. With this type of investment, you can properly diversify your retirement funds and make a nice return as well.

3. Hedging

Another trick that many successful investors use in their IRAs is called hedging. This involves investing in a certain amount of inverse securities. These securities will actually go up in value as the market goes down. This allows you to bring in a return even if the market is not performing well. There are several leveraged inverse ETFs and mutual funds that can make this option even more attractive. By investing in a leveraged ETF that moves twice as much as the underlying index, you will need only half of the funds to protect your normal investment positions. Therefore, you can protect yourself against large downturns in the market.

4. Dollar Cost Averaging

Dollar cost averaging is an investment strategy that has been proven to work over the long-term. With this strategy, you will be investing a certain amount of money on a regular interval schedule. For example, you might choose to invest $100 every month into a particular security. With this strategy, you will be able to negate the influence of ups and downs in the market. Whenever the price of a security goes up, you will buy fewer shares. Whenever the price goes down, you will be able to buy more shares. Therefore, this will provide slow and steady growth to your account over the long term.

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