4 Popular IRA Investments

There are a number of different IRA investments that you could potentially make as part of your retirement account. Directing your IRA funds into the proper investment channels is an important part of successfully building your account. Here are a few of the more popular things to invest in with an IRA.

1. Stocks

While stocks might not be as exotic as some of the other investments out there, they are still one of the most popular investment methods available. Stocks give you a chance to buy ownership in particular companies and earn a return on your investment. You can trade stocks on the stock exchange and bring in a nice yield over the years. While there are many other options out there, stocks have proven the test of time for investors. 

2. Mutual Funds

Mutual funds are another very popular form of investment for IRAs. Mutual funds provide you with a chance to invest in an entire basket of stocks and other investments for a small price. With each share of mutual fund that you are buying, you are getting a portion of a very diversified portfolio. A mutual fund manager makes all of the individual investment decisions with the money that is brought in. They use this money to buy stocks from a number of different companies and industries. Therefore, one company going down will not greatly affect the entire portfolio. This is one of the safer forms of investment that is available because of the vast diversification that goes with it. 

3. Bonds

Bonds are another popular type of investment for many IRA holders. With a bond, you are buying a debt instrument that is offered by a corporation or by a government. With bonds, you give the entity a certain amount of money to use. You will receive the interest payments on the money over the term of the bond. Then in the end, you get your initial deposit back. This is a fairly safe form of investment because the only way that you could possibly lose your money is if the company goes bankrupt. Even then, you could get it back because you are a creditor. This presents you with a steady flow of interest payments going into your IRA over the years. 

4. Real Estate

Real estate is another investment that many people turn to for their IRA portfolios. Not every IRA will allow you to invest in real estate with your money. However, the ones that do are rapidly growing in popularity as some investors have been scared away from the stock market. With the money in your IRA, you could potentially buy a house, or buy property to resell. You could invest it into a real estate investment trust that utilizes a number of different strategies to bring in money from real estate. As long as you are utilizing the money to bring in a return instead of buying personal property, you should be able to invest in real estate with your IRA money. 

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