For those retirees or those who are nearing retirement, a constant review of retirement funds seems to have a greater importance compared to say 20 years ago. That’s not surprising but retirees and their financial planners regularly pore over their fund self directed IRA and real estateallocation to make sure there’s going to be enough funds to retire and live comfortably.

For those retirement allocations with a mix of stocks, bonds and mutual funds, it’s not really a pretty picture right now. For those living off of the gains from their investments they see that their financial cupboard is a little too bare. But it doesn’t have to be that way.

Anyone with a self-directed IRA can change all of that and receive solid, double digit returns by investing in real estate.

A self-directed IRA simply means an IRA that can be allocated by the individual instead of having the investment decisions made for them, such as an employer-managed 401(k). A self-directed IRA can be used to invest in real estate, private notes or mortgages among other real-estate related investments.

For example, an individual has $100,000 in an IRA. The investor is 55 years old and wants to retire right at 65. The current allocation has 80 percent in mutual funds, with half in aggressive stocks and the other half in more stable investments. The remaining 20 percent is in bonds. If you look back over the past five years and look forward say another three, what are the prospects of any investment returning profits in double digit returns?

Now what if that same individual transferred $25,000 to invest in a property that will be rehabilitated and sold for a substantial profit and the investor receives a return of 12 percent in the course of about six months? Those returns are common but the everyday investor is typically only aware of a stock and bond mix. That IRA can be put to much better use. It can be used to invest in real estate.