Managing Money
For Retirement:
Think Safety and High Yield

This discussion about managing money has nothing to do with penny pinching to make money last longer. It's about how to make what you already have grow as quickly, and safely as possible to return free dollars (comonly known as interest).

If you're in this for maximum growth and return, your funds have no business sitting in CDs and low producing mutual funds. You should be in absolute control all the time. And thanks to today's powerful money managing software, staying in control is a breeze.

I think anyone who has read more than one page of my website know how I feel about having banks make all the profit on your money (even in the case of home equity loans you should be in control of your equity).

One of the ways to manage money for growth is with private mortgage loans. They are simply money that you would lend to an investor or property owner at a very low loan to value (LTV) but that is secured by real estate. You don't need to have a gazillion dollars in the bank. You could make loans as small as $5,000. It all depends on you and your borrower's needs.

Your money doesn't have to be out for too long either. Again, you're the boss. You tell the investor or the borrower how long you're willing to lend for, end of story.

I did mention that managing money wisely is about high yield and debt control, didn't I? Many people are surprised to find out that they can lend money at 9% or 15% or more (as long as you don't violate usury laws in your state). You see, very often, it is not about the interest rate. It has to see with how quickly and easily money can be obtained.

An investor or homeowner may gladly pay you 10%, 12% or more for several reasons. First, they don't have to go through the scrutiny and long approval process of a bank.

Second, super deals don't last forever; many times you must be ready to move at lightning speed in order to get it. In which case, having the money available is several times more important than the interest rate.

This is what happens when you become a private lender. You will have an attorney draft a note, and a mortgage to be recorded at the local county courthouse. If this sounds like what a bank gets at closing, it is. Except that now you are the bank.

The only difference is you're lending much smaller amounts, you're getting much higher short-term returns at lower risk (because your loan is at a lower loan to value (LTV)).

One last managing money tip. You can become the bank not only with money sitting in mutual funds or CDs you have earning very little, but also with your IRA and collect high yield, tax-deferred.

Managing money for high yield is your job (especially when we're talking about your retirement funds). And it could be a real fun job as you watch your returns (as I like to call it, free money) multiply.

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