This past weekend the Paperstac team attended a self-directed retirement Expo. One of the many things that we walked away with was that the fact that many people had small account balances and no idea what to do with it.

Upon our return we decided to research this a little further and we found that the average IRA balance for those under 40 years of age with an account at Fidelity is about $24,000. We looked at numerous other sources including government surveys and found that number to be fairly consistent across the board.

Based upon that, we figure that the average balance is about the same for those under 40 with self-directed accounts. So where does an investor invest this small balanced account?

Well, I think we can all agree that a small balance account holder wants to avoid risk. On the other hand, the account holder would like to maximize growth. Unfortunately, according to the US Report on Economic Well-being, 6 in 10 non-retirees who hold self-directed retirement savings accounts (IRA , 401k etc.) have little or no comfort in managing their investments so their choices default to:

  • Cash or cash-like account (low risk, no reward)
  • Stock market (high risk, high potential return)
  • Bonds (lower risk, low return)
  • Mutual fund (low to moderate risk and reward)
  • Real Estate (depends on the individual deal but requires effort and active participation)
  • Real Estate notes (depends on the individual deal but requires effort and active participation)

It’s a tough decision for someone in this situation to make and many investors end up just holding it in cash or cash-like account where breakeven is about as good as it can get. Heck, inflation will even make it an overall loss.

Today, there is a better alternative. A place where you can be a passive investor owning a small percentage of asset-backed mortgage notes with a potential annual return of 10%.

The place is a new SEC A+ fund which is open to both accredited and non-accredited investors. This industry changing fund enables investors to participate with as little as $200 and is fully-approved for retirement account investing. So now, your small account can participate with the bigger investors and share in the bigger returns.

The fund is called the Money With Meaning Fund and you can read all about it at www.MWMFund.com . Better still, you can invest directly from the website with no middleman.

The MWM Fund:

  • Makes it easy to invest (within or outside of your IRA)
  • Professionally managed
  • Passive investing with up to 10% return
  • Quarterly reports

Socially responsible fund enables people and families to stay in their homes