What is IRA Portfolio Rebalancing? |
  • Phone Number CALL JWB
  • 904.677.6777

What is IRA Portfolio Rebalancing?

Spreading out the funds invested into most forms of retirement accounts is the normal process for the average investor. While income grown inside of a regular account, the process of diversification is one that is not practiced enough by account holders. Knowing what is IRA portfolio rebalancing can help a person understand how real estate could fit nicely into a cash flowing portfolio.

Rebalance a Portfolio Defined

Focus and control are two aspects that can define rebalancing. While some adults put money into an account and expect someone else to make decisions, it is now more common for a person to pay closer attention to how and where income is built. To rebalance means to organize all investments one to two times a year to ensure the highest growth is achieved through investing practices.

ira-portfolio-rebalancing

How Rebalancing is Helpful 

A person who has $75,000 saved up for retirement inside of an IRA or 401K account might invest 90% of the account in a mutual fund and 10% in a money market account. The huge swings downward and slow swings upward can minimize the growth potential of an average account. Getting a better understanding of what security in a mutual fund is earning the most money is a huge advantage for an investor. Placing money into areas of the market that have no growth potential can have disastrous results.

Real Estate IRA Rebalancing 

Did you know an IRA can buy and hold real estate? Most people are unaware of this investing strategy. Someone can actually rebalance a retirement account to include double-digit return rental homes instead of regular mutual fund products. IRAs and 401Ks are included in allowed types of investments. Because real estate appreciates in most fiscal years, the value of the investment will be higher year after year.

Second Home Purchases are Allowed

A person who already owns a rental and has witnessed positive growth can purchase another property using retirement dollars. Several strategies exist although a 1031 real estate exchange is the most common way to buy a second home for use as a rental home. A person who would rather have two fully managed properties must use a rollover or secure financing through another source to successfully purchase a second rental house. 

Secure Retirement with Rental Homes

Planning early for retirement can create more wealth although some adults are already close to retirement. A simple way to produce income of up to 15% annually is through IRA rebalancing with real estate. JWB provides the only free guide offered on the web that explains the process in detail. A download is offered right on this page to kick start new investment routes for adults.

Request Your Investor Form

Download JWB FREE Passive Income Information Kit
Download JWB FREE Passive Income Information Kit
What returns can you earn with JWB?
Try JWB Cash Flow Calculator