Save Or Build Your Retirement Security by Using IRA Money to Buy Real Estate
Are you worried that you will not have enough money in your retirement account to live a comfortable life when you retire? Wondering what you can do to make sure this won't happen to you? Well, using IRA money to buy real estate is a great way to do just that, and this article will explain what this is all about.
Whether or not you already have an IRA or not, you could benefit from this amazing opportunity.
First of all, you'll need to have self directed account if you'd like to invest IRA money to buy real estate.
There are options to roll over your current retirement vehicles (like a 401k) into a self directed IRA.
Most of the time, you will not even incur any penalties for doing this either.
A self directed IRA has a few benefits to it.
It allows you to invest in more types of assets besides your usual company stock, bonds, and mutual funds.
It also puts you in full control over what happens within the account.
This may sound a little scary now, but it's really not.
Even though less than 4% of IRA holders choose to self direct their account, it's still a great way to experience large returns of your investment.
You just have to know what you're doing.
You can also find a "trustee" or "custodian" to help you along the process of using IRA money to buy real estate.
They are responsible for holding your funds, as well as filling out all necessary paperwork that comes with owning the account.
They are not allowed to give you investment advice, but they do help assure that everything runs smoothly.
So what does using IRA money to buy real estate entail? Well, you have to find a property that you want to purchase.
Then all the necessary paperwork has to be filled out, and your custodian will make the purchase using your account.
Then, if any repairs or renovations are made, you must use money that's taken out of your self directed IRA.
And once you make any profits, whether it's from renting out or reselling the property, they have to be put back into the account.
Since your self directed account is technically a Roth IRA, your profits with be free of taxes for life.
If this sounds like a lot of work, you're right.
But fortunately, there are companies that help people use IRA money to buy real estate for a living, and you can use their knowledge and expertise to make the process a lot easier.
In fact, there are "turn-key" solutions available that take care of most of the legwork for you.
If you can open a self directed IRA, put a decent amount of money into it, tell your custodian what it is you want, and then collect a return check after the process is over, would you take advantage of a great opportunity like this? I thought you'd say that..
..
and that's how a "hands-off" system that uses IRA money to buy real estate works.
Whether or not you already have an IRA or not, you could benefit from this amazing opportunity.
First of all, you'll need to have self directed account if you'd like to invest IRA money to buy real estate.
There are options to roll over your current retirement vehicles (like a 401k) into a self directed IRA.
Most of the time, you will not even incur any penalties for doing this either.
A self directed IRA has a few benefits to it.
It allows you to invest in more types of assets besides your usual company stock, bonds, and mutual funds.
It also puts you in full control over what happens within the account.
This may sound a little scary now, but it's really not.
Even though less than 4% of IRA holders choose to self direct their account, it's still a great way to experience large returns of your investment.
You just have to know what you're doing.
You can also find a "trustee" or "custodian" to help you along the process of using IRA money to buy real estate.
They are responsible for holding your funds, as well as filling out all necessary paperwork that comes with owning the account.
They are not allowed to give you investment advice, but they do help assure that everything runs smoothly.
So what does using IRA money to buy real estate entail? Well, you have to find a property that you want to purchase.
Then all the necessary paperwork has to be filled out, and your custodian will make the purchase using your account.
Then, if any repairs or renovations are made, you must use money that's taken out of your self directed IRA.
And once you make any profits, whether it's from renting out or reselling the property, they have to be put back into the account.
Since your self directed account is technically a Roth IRA, your profits with be free of taxes for life.
If this sounds like a lot of work, you're right.
But fortunately, there are companies that help people use IRA money to buy real estate for a living, and you can use their knowledge and expertise to make the process a lot easier.
In fact, there are "turn-key" solutions available that take care of most of the legwork for you.
If you can open a self directed IRA, put a decent amount of money into it, tell your custodian what it is you want, and then collect a return check after the process is over, would you take advantage of a great opportunity like this? I thought you'd say that..
..
and that's how a "hands-off" system that uses IRA money to buy real estate works.
