Retiring with real estate is an excellent direction for those who have a feel for the local property market, or as an alternative for standard Wall Street assets. When you invest your IRA or 401(k) in real estate, you’ll find a number of financial advantages that aren’t present in other asset classes.
The most practical way to put retirement funds into real estate is to do so through a Self-Directed IRA or Solo 401(k). Keep in mind, though, that are two different platforms for Self-Directed investing, and which one you choose requires an understanding of your investing strategy.
For most real estate investments, the preferable platform is Checkbook Control. Occasionally, however, the Custodian platform might be the better option. This is true in a case where the investor plans on investing in a property and then having no further interaction with it.
There are numerous strategies that an investor can pursue when utilizing property to provide retirement income. Which one is most appropriate depends upon the investor’s mindset and retirement goals.
Which strategy is right for you depends upon a number of factors. Some of these include the size of your retirement account, the amount of involvement you’re willing to dedicate to your property, and what kind of profits are you looking to acquire with your retirement funds.
Real estate, like every other retirement asset, is subject to market forces. The most profitable routes for investing in real estate are beyond the scope of this article, and it pays to get educated if you plan on entering the field. In terms of Self-Directed platforms, however, there is an important concept that you should be aware known as Prohibited Transactions. In essence, these are transactions that the IRS has declared prohibited and may not be utilized by your IRA or Solo 401(k). Click here to learn more about Prohibited Transactions.
Broad Financial specializes in setting up Self-Directed retirement accounts which allow for real estate investing. To learn more about real estate retirement investing and how it can fit into your financial goals, please call Broad at 800.395.5200. We can help assist you in creating your own prosperity.
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