Using Real Estate To Diversify And Optimize Your Retirement.
Many of us have most or all of our retirements in a 401k at work. However, if you can access your 401k funds your can roll some of them over into a Self Directed IRA. This can give you more flexibility and allows you to take advantage of economic downturns instead of being taken advantage of.
If you spot a particularly great deal on real estate, and you have the funds in your retirement to purchase it, a Self Directed IRA LLC will allow you to purchase and maintain the property using the funds from your account. (Self Directed IRA LLC are more expensive in California and Illinois but there are other options for those states.) The costs for setting up the account will be about $2000 and include a state filing fee.
That includes, set up of the account, the LLC and guidance on how to proceed. That also includes consulting after the plan is up and running.
You can purchase property strictly as an investment or as a rental where all rent is paid directly to the LLC and adds to your retirement account. Costs associated with the property are paid by the LLC such as taxes, maintenance, etc. So you don't have to pay out of pocket.
Of course, you want to remain diversified and do this with only part of your retirement. With the incredible opportunities for purchasing real estate at low prices, now is a good time. Rental income plus the appreciation on your property could have a huge impact on your retirement.
To maximize appreciation look for the worst house in the best neighborhood you can find. To maximize rent revenue look for the best house in the worst neighborhood. But find the best deal you can.
Be careful to find a good company to work with. With any investment, find people you trust. Be sure of what your doing and don't rush into anything.
When it's time to retire, your Self Directed IRA LLC can stay in place. The LLC can disperse funds to you as you need them. If you prefer, you can dissolve the account and take ownership of the LLC yourself. Being successful in taking ownership over your financial life and career is important.
Article Source: FxTradingStock.com
About the Author
NAFEP (The National Association of Financial and Estate Planning) wants to put you in control of your finances with the following: self directed IRA and self directed 401k products, administrative and custodial services.
by: Ace Winget
Total views: 34
Word Count: 387
Date: Wed, 7 Jul 2010
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