Investment Programs» IRA/401k - Retirement Growth
Real estate IRA investing opens up a huge range of alternative investments for individuals who are knowledgeable about real estate investing or who work with knowledgeable advisors, sponsors, or brokers. Investing in real estate for your retirement may serve as a means to diversify your retirement portfolio to hedge against the cyclical changes in the stock market, economy and bank and government-based investments
For many who are experienced with real estate investing, real estate investments hold the potential to protect against the loss of principal while generating better than market rate returns through income production and capital gains. When real estate investments are not leveraged, both income and capital gains can flow back to IRAs tax-deferred (or tax-free if the IRA is a Roth IRA).
Self-Directed IRA/401(k) is set up with a custodian or trustee who administrates the account on behalf of the client for a fee and does not make any investment decisions or management. “Self-Directed” means all the investment decisions are made by the client. The custodian/trustee simply execute the instructions specified by the client. Unlike traditional bank or brokerage based IRA/401(k)s that usually limit investments to stocks, bonds, or mutual funds, Self-Direct IRA/401(k) accounts allow investments in real estate, private note/businesses, and other alternative assets.
Clients with IRAs may rollover the following accounts or plans to one or more Self-Directed IRA/401(k)s accounts:
Roth IRAs- SEP IRAs
- 401(k)s
- 403(b)s
- Defined Benefit Plans
- 457 plans
- Keogh plans
In addition, under certain rules, client may combine discretionary money with Self-Directed IRA/401(k) funds in the same investment provided that the funding of the transaction happens simultaneously on the same date.
Links: The complete IRA eBook (A must read), IRA FAQs, IRA Growth Calculator,About PENSCO Trust.
