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How To Double Your Money Every 7 Years Safely – Mortgage Note Investing in Your IRA Account

The fundamental rule of investing: All investments that have the ability to provide a yield, or a profit, or a gain also carry the risk of loss. There are no exceptions to this rule. Never be tricked into believing that any investment is "risk-free" or a "sure-thing".

Since risk can not be avoided, you then ask ask two questions: 1) in what can I invest that has the least risk? 2) how can I double my money over time with as little as risk as possible? My answers are: 1) invest in things that you understand; 2) invest in things that you can personally control; 3) allow the passage of time to multiply your income; 3) minimizeize income income taxes; 4) get expert advice and guidance when you do not understand what is happening.

Mortgage note investing is an excellent long-term investing plan . Investing your IRA funds in mortgage notes (promissory notes) is one of the best investing vehicles available. All investing, and especially retirement saving and investing, is a long-term process, but the sooner you get started, the more time your investments have to grow.

There are several reasons why mortgage notes are an excellent investment for you-especially in your IRA account. The advantages of notes are:

  • Capital gains and interest earned are either tax-free, or tax-deferred
  • If interest is received monthly, it is compound 12 times per year
  • The yield on private notes is usually 7% to 14%
  • If the note is properly collateralized it is usually very secure
  • If the note is properly drafted, it is usually very collectable and enforceable
  • If the note is properly drafted, its risk is usually predictable and clear
  • If funded by your IRA, there will be no bank borrowing to repay
  • The size of the investment can be tailored to your needs by investing in smaller notes, or by investing in fractional interests of a large note. As an example, it is possible to own a 5% or a 15% interest in a large note.

Here is how…

Read More…. by Lawrence Tepper

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The post How To Double Your Money Every 7 Years Safely – Mortgage Note Investing in Your IRA Account appeared first on Note Investing Seminars.

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