How to Invest in an IRA and Grow Rich

You’ll need to know both how to invest and where to invest to really make your IRA grow and someday make you rich. If you invest in the wrong places where your investment options are limited you lose opportunity. Here we suggest the best place for most people to invest IRA money and make it grow with only moderate risk.

Even if you are conservative you can learn how to invest and grow your money in an IRA at a level of risk you can live with. Face it, if you invest all of your IRA money in safe CDs it will never make you rich no matter how you define that term with today’s interest rates. Most people lack the background necessary to select and manage a portfolio of stocks, bonds and real estate. The good news is that average folks hult private capital reviews CAN learn how to invest and put their IRA money to work in these and other areas if someone points them in the right direction.

The road to riches starts with who you invest with, or where you open your IRA account. Diversification is the key to growing your money and limiting your risk in these uncertain times. You do not need to open an IRA brokerage account and then learn how to invest in and manage a list of individual securities like stocks and bonds to get diversified. Instead, keep things simple by opening an IRA account with a major mutual fund company like Vanguard or Fidelity, and invest in a variety of the funds they offer.

A mutual fund is simply a professionally managed and diversified portfolio, a basket of securities like stocks and bonds. Funds are designed for the majority of people who really don’t know how to invest and diversify on their own, or just prefer to have professionals doing the day to day investment management for them. When you invest in a fund you own a small part of a large portfolio of stocks or bonds or other investment securities. Inside just one account you can invest in money market, bond, and stock funds; even in specialty areas like real estate funds.

Here’s how to invest and diversify across the asset classes or all four fund types mentioned in the last sentence. Money market funds offer high safety and interest income, while bond funds pay higher interest income with moderate risk. General diversified stock funds offer higher profit potential with significant risk, as do real estate and other specialty stock funds. Invest in all four categories, and decide how to invest or how much of your total investment to invest in each area.

If you are safety conscious you will want to invest heavier in money market and bond funds. If you are young and aggressive invest the lion’s share in stock funds, including real estate funds. Whether in an IRA or some other type of account, mutual funds are the average person’s answer to how to invest to grow rich over time.

A retired financial planner, author James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

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