Purchase Land Using a Self-directed IRA
Millions of Americans invest in very popular Individual Retirement Accounts or IRAs. Unfortunately, the rate of return on these accounts can be woefully inadequate to retire in the fashion that most people envision. Neither traditional nor Roth IRAs are generating sufficient retirement income, and the recent economic downturn has not helped matters at all.
In spite of this bleak outlook, there are options available to significantly impact the earning potential of IRAs. In a traditional IRA, you do not have the option to purchase real estate. However, with a self-directed IRA, you can invest in real estate. As the name suggests, a self-directed IRA provides you with significant control of how the money is invested. Self -directed IRAs can be used for most IRS permitted investment vehicles including investment property. The only exclusions are life insurance and collectibles.
Self-directed IRAs and real estate make a great combination. Think about it. IRA funds are intended for long term investing. Real estate, and in particular, raw land, is considered a non-liquid investment, so it makes sense to pair funds earmarked for long term growth with an inherently long term investment.
A good piece of land has the potential a significant rate of return, far greater than that of an 8% to 12% stock market investment. Land located in a known path of economic expansion can literally skyrocket in value. Even better, the distribution of earnings and appreciated equity from the property’s resale is tax free when purchased through a self-directed IRA.
As with any investment prospect, seek the advice of a certified professional when utilizing a self-directed IRA. There are numerous rules to be aware of, and a professional can help you accurately interpret and navigate the legalities.
Real estate is great for both short and long term investment strategies. Do not ignore your future or just hope things will work out. “It’s better to look ahead and prepare, than to look back and regret.”
Find more information and learn about my friend Jack Bosch’s new course, the Land Profit Generator, at http://www.landprofitsreview.com . Also, you will have the opportunity to sign up for our free list that brings real estate investing tips and discounts right to your inbox. No spam, just content!
