Your Self-Directed IRA Will Benefit If You Invest At The Right Time

Gold Real Estate Investing

When I go to the supermarket I buy many of the same items. I find myself sticking to the same types of foods and products. One thing I love that I find myself buying over and over again is fruits and veggies. I also find myself eating the same ones over and over again but not until recently though have I been more conscious about the actual quality of the fruits and veggies that I buy and it has gotten me thinking of how to buy the best fruits and veggies possible.  While there are many different things that affects the quality and taste of a fruit but there is one factor that intrigues me and one that I want to follow more closely as it is a sure way to get better tasting fruit at a much better price. This factor I am referring to is the seasonality of fruits and veggies. When you buy fruits and veggies that are in season they have higher nutrition content and are better for you because they haven’t lost some of their nutrition. They are also cheaper as well. A great strategy to buying the best fruits and veggies are to buy them when they are in season. If they aren’t in season then move on to another fruit and veggie that is in season. You’ll get the most bang for your buck and your taste buds will be glad you did! As I said before, it is best to choose fruits and veggies when they are in season because they are cheaper, tastier and more nutritious.  All around you get the most for your money and the best quality. Why not put this same theory into our investing strategies? Are there times during the year that are better for investing in certain types of investments? Well let’s take a gander and talk about that.

As I was looking into this a bit more I decided that I wanted to look at a few different types of investments that are very common inside of a self-directed IRA retirement account.

I do want to let everyone know that it can be VERY hard to time the market and the following advice is great and can help you invest with a greater chance of having that investment go right. You need to remember though that there are just too many variables and that past performance doesn’t guarantee certain future performance.

Real Estate

The first investment I looked into to see if there was a best time of the year to buy was real estate.  I scoured the net for numbers and articles to see what I could find and while there is seasonality as to when the most about of buys occur I feel like I have come out of it feeling like it really quite depends on your situation as well as to when the best time to buy is. 

There is no doubt that the most home sales occur between the months of April and July. Looking at this with some common sense makes it quite easy to understand why these months are the most active for home sales. First, a majority of home buyers are families and moving a family is easiest during warmer months and even easier when they are out of school. Trying to move children out of school to a new school during the school year is just a headache that many of us don’t want to deal with if we don’t have to. While being practical the months of April through July may be the smartest times to buy when looking at the overall picture of moving a family when it is easiest and most convenient. Luckily, with a real estate purchase inside of a self-directed IRA retirement account we aren’t concerned about moving our family into the home because buying real estate inside of a self-directed IRA retirement account prohibits you living in the property. So your options are limited but that is a good thing in a way because you can focus at buying a property at the best price.

What months are the best to buy real estate for the best price? The steepest discounts typically come in the winter, when the amount of buyers has slowed considerably. Sadly for buyers, sellers realize that this is a tough time and typically pull their homes that are for sale or wait until spring to list their homes for sale. The amount of homes that are listed for sale drops by roughly 15 percent during the months of November through January. Your pick of the litter may not be what it is during the spring but you as the buyer have the biggest bargaining power because of supply and demand. There just simply aren’t enough buyers out there and the sellers who do decide to weather the strom typically are desperate to sale their place and the sooner the better.

If it was up to me and I was looking to invest in a property inside of my retirement account I would totally be looking to buy during November through January.

If you are looking at buying real estate with a self-directed IRA we can help.

Gold

The next common investment inside of a self-directed IRA is Gold or other precious metals but I am specifically talking about gold here.

When diving into the when the best times to buy gold would be I would assume that I wouldn’t find much on the topic but I was pleasantly surprised that there are plenty of opinions as to when the best time to buy gold is.  I stumbled upon some solid ressearch at caseyresearch.com that looks at the average monthly gain and loss figures for gold since 1975.

Since 1975 March, on average, has by far been the worst performing month which would make it the best month for buying gold.  While that is interesting I found the next tidbit even more interesting. Since investments tend to behave differently depending on the type of market we are in (bull, bear, flat and mania markets) it is a wise decision to see how gold performs during these types of markets as well. Surprisingly, while the results do definitely vary the only month that has been down in every market condition is March.

If you are looking to buy gold, the best time to buy according to the findings is of course March. Of course that doesn’t mean that it is always going to be the case because you can’t expect future performance is always going to mirror past performance but it is one of the best indicators we have to investing smarter.

If you are looking at investing in gold with a self-directed IRA we are here to get you started.

Conclusion

While there are plenty of other types of investments that are allowed in a self-directed IRA retirement account, gold and real estate are two of the most popular choices. Again, as I mentioned earlier past performance isn’t a sure way to predict future performance and you should always do your own due diligence when investing with your self-directed IRA retirement account. That is the great thing about self-directed accounts, you get to choose when and how you invest with that account. You have the control.

If you would like help with your self-directed IRA retirement account or setting up an account call or email us today.

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