Park Your Annuity In Your IRA

The most valuable asset you have is your IRA. In 1975 the government established individual retirement accounts, aka IRA’s, to be held at a custodial institution - a bank or brokerage firm – which can be invested in anything the custodian allows including Annuities, Stocks, Bonds and Gold. Transactions in the account including interest, dividends and capital gains are not subject to taxes while still in the account .You deposit money free of any tax until you decide to withdraw it.

If a financial advisor tries to talk you into changing your IRA, run for the hills. This is the most versatile investment vehicle you will ever own! You can buy stocks, bonds, and annuities all within your IRA to form a well-diversified portfolio. By allowing you to invest in a variety of asset classes, it is an affective way of lowering your portfolio volatility and a sure way to lower your fees. It can be rolled over when you retire in easy fashion. Within your IRA there's a place for a fixed rate traditional annuity paying 5% or better for a 5 year period. Never place more money in any one annuity than your state insurance fund guarantees. The amount should be no more then 20% of your holdings.

Now that you have that tucked away, lets look at some high powered, safe investments. The only way annuity companies can pay you 5% is by investing in preferred stocks that pay them 10%. You can do the same thing! They are easy to find and easy to buy. Lots of great companies have been paying 7- 10 % dividends every year for the last 10 years or more, in good and bad times. Under normal conditions these stocks should appreciate 3% per year as well. If you need help you can purchase an unbiased financial newsletter for about $15 per month at www.dividenddetective.com unbiased newsletter.

Also consider investing in Closed End Funds, a group of high dividend stocks traded as a single stock - essentially a special type of mutual fund. You get the wisdom of Wall Street‘s big bonus boys without the high fees and the ability to buy and sell as a stock. Preferred stocks in blue chip companies are solid investments and belong in every diversified financial plan. Your money will grow tax free and dividends can be reinvested. You only pay taxes as you withdraw money, in most cases at a far lower tax rate. A little education goes a long way. Trade on line with a discount broker to keep your fees down. Before you do anything, make sure you insure your family against the pitfalls of life with an ample Life Insurance Policy.
Diversify and enjoy your 10 % every year!