Mutual funds - Posted by G. DeStefano

Posted by G. DeStefano on August 28, 2002 at 18:22:51:

Hello M. Martin

Thank you for the reply. This sparked a curiosity in me. I went to B&N and looked up the book you mentioned by Meyers. On page 75 he talks about the self directed third party IRA. He noted that mutual fund companies want you to think they only invest in stocks but this is not true. They invest in stocks because of the commissions they make. He took one of these self direced IRA and invested in private mortagages. 15-26% return! Some offer check writing.


Mutual funds - Posted by G. DeStefano

Posted by G. DeStefano on August 24, 2002 at 10:02:54:

Hello All:

I have a declining mutual fund account and I feel the assests could be used more efficently through my REI.

I bought the average investor idea (8yrs ago)of holding on to the MF for the long haul and dollar cost averaging. I have thought of stopping the dollar cost averaging for a while but I do not want to early withdrawl and get penalized.

Any thoughts on how I should handle this? I will not be 65 for another 30 plus years.


Re: Mutual funds - Posted by Bob (oh)

Posted by Bob (oh) on August 26, 2002 at 04:53:44:

OK, Greg.
First of all You are not much younger than I.
Second, you were very smart to begin an investment at such a young age.
However, you were not aware of the “BIG” picture to which you have come across now.
So, take some time and figure out what your 10% penility will be and then figure out what your tax will be. How much you have put into this account over the last 8 years and how much it has earned you.
Now, here comes the hard part. Decide for yourself if its worth it to pull it out. I would like to remind you that I would never suggest you do this sort of thing had you not asked and also, I am not a career financial guru. This is a decision YOU need to make and before you can answer that, Do the numbers.
If you read some of the success stories here, you will see that the rate of returns most people get are way above and beyond what you are currently making on you rmutual fund. I for one have never been a fan of mutual funds, thanks to Warren Buffet. That is a lazy way to invest and quite frankly…boring. I played with day trading for awhile and still never seen the type of return that can be accomplished in real estate (except for one)
See your banker or investment advisor if some of the numbers are not real clear.
If I can help in anyway, drop me a line and I’ll do my best.

Re: Mutual funds and REI - Posted by G. DeStefano

Posted by G. DeStefano on August 26, 2002 at 20:19:06:


Thanx for the reply. I have assets in a rollover IRA, Roth IRA and an outside retirement account. What I thought about doing is selling the investments made in the outside retirement accout. To avoid penalties or early withdrawl fees. Then use these assets to invest in some RE. Just throwing out ideas I will research it further. However I appreciate your ideas on this topic.


Re: Mutual funds and REI - Posted by M. Martin

Posted by M. Martin on August 27, 2002 at 20:38:31:


I have not done this myself, but I read that you can invest your retirement money directly into real estate with no withdrawal penalty. You will need to roll the money into an IRA that allows this type of investing. There is no law that says your IRA has to be invested in mutual funds or stocks. One book I read, “Buy it, Fix it, Sell it, Profit” by Ken C. Meyers describes the process in more detail. What he basically did was rollover his IRA into a plan that allows REI and used the money to fund fixer upper deals. All profits he made went directly back into the IRA tax free just as if it were divedends or capital gains on stocks. I think he listed some IRA admistrators that offer this service but I don’t have my book with me to list them here. Good luck.