Real Estate and Your IRA

Diversify Your Investments

Ask yourself this – “What would my retirement be worth today if the stocks and funds in my current portfolio went to 0?” Now ask yourself this question – “What would my retirement be worth today if the real estate assets my IRA owned were worth $0?” Your real estate assets will still produce a return and cash flow even if they had a market value of 0. When you retire you will not have to sell the real estate to take advantage of the income.

An Alternate Approach

Is it legal to purchase non-standard assets such as real estate by using my IRA?

Yes. The Employee Retirement Income Security Act of 1974 (otherwise known as ERISA) essentially passed the responsibility of retirement saving from the employer to the employee. IRAs were created in 1975 to provide individuals a chance to direct where their retirement funds were invested. Nearly any kind of real estate is permissible under a Self Directed Retirement Account. The IRS code specifies no restrictions on types of real estate, how long the property is held, where the property is located or the price and/or market value of the property.

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