Real Estate - Not Just Sticks & Bricks!
Well, if you don't know me...
you wouldn't know that real estate is one of my favorite subjects to touch on.
So today, we'll talk a little about real estate and how the still widely untapped market of IRA investment can be utilized to take your investments to the next level and beyond! One of the newly popular choices for a Roth IRA investment is real estate.
Many people believe that the only choices for Roth IRA investments are stocks, bonds and certificates of deposit.
That may be all that your bank or brokerage offers, but under the law, there are many things that you can invest in.
There are a few brokers that offer many self-directed Roth IRA investment opportunities.
The list of those that are allowed under the law and by one of the largest most experienced companies is relatively long.
I'll list just a few of them here.
Residential and commercial real estate, undeveloped raw land, real estate notes (mortgages and deeds of trust), promissory notes, tax lien certifications, foreign currency trading and gold bullion are just some of the allowable Roth IRA investments.
The list of what is allowed is much longer than what is not.
Some accountants become confused and frustrated because the applicable tax laws are not very specific.
But, I think they are specific enough.
It's very simple really.
The goal of a Roth IRA investment is to secure funds for future use.
Since it is an account that could be left in an estate after a person's death, the items held within the account must be relatively easy to liquidate.
So, Roth IRA investments that are not allowed include items like antiques and collectibles.
It is difficult to establish a fair market value for them.
It could be hard to find a buyer for them.
So, they cannot really be classified as "liquid" assets.
Real estate, on the other hand, is allowed as a Roth IRA investment, because the property value is easily established.
Appraisals are done on a regular basis, in order to compute personal property taxes, where applicable.
And, even when the market is in a "slump", it is relatively easy to sell a house, apartment building or a vacant lot.
The reason that people want more options for Roth IRA investments is clear.
Stocks are tanking across the board.
Bonds and CDs are low yield items.
If you want to grow the account quickly, you need other ways to diversify.
Currently investors are in a unique situation.
There are many foreclosures.
Many bank owned properties are going up on the auction block.
If you have the funds, you can find properties well below their fair-market value.
If you have the know-how, you can make nice profits in a relatively short period of time and avoid capital gains taxes by using your retirement account.
More traditional Roth IRA investments are just not that profitable right now.
There are several steps to follow before you can begin.
First, you must set up a self-directed account with a custodian that offers everything allowed under the law.
You want an experienced custodian, one who is familiar with all of the relevant tax-laws.
If you have little experience in this sort of thing, you want to invest a little time in educating yourself or find an experienced investor that is willing to help.
If you make the right Roth IRA investment choices, your retirement can be just as you always dreamed, peaceful and secure.
you wouldn't know that real estate is one of my favorite subjects to touch on.
So today, we'll talk a little about real estate and how the still widely untapped market of IRA investment can be utilized to take your investments to the next level and beyond! One of the newly popular choices for a Roth IRA investment is real estate.
Many people believe that the only choices for Roth IRA investments are stocks, bonds and certificates of deposit.
That may be all that your bank or brokerage offers, but under the law, there are many things that you can invest in.
There are a few brokers that offer many self-directed Roth IRA investment opportunities.
The list of those that are allowed under the law and by one of the largest most experienced companies is relatively long.
I'll list just a few of them here.
Residential and commercial real estate, undeveloped raw land, real estate notes (mortgages and deeds of trust), promissory notes, tax lien certifications, foreign currency trading and gold bullion are just some of the allowable Roth IRA investments.
The list of what is allowed is much longer than what is not.
Some accountants become confused and frustrated because the applicable tax laws are not very specific.
But, I think they are specific enough.
It's very simple really.
The goal of a Roth IRA investment is to secure funds for future use.
Since it is an account that could be left in an estate after a person's death, the items held within the account must be relatively easy to liquidate.
So, Roth IRA investments that are not allowed include items like antiques and collectibles.
It is difficult to establish a fair market value for them.
It could be hard to find a buyer for them.
So, they cannot really be classified as "liquid" assets.
Real estate, on the other hand, is allowed as a Roth IRA investment, because the property value is easily established.
Appraisals are done on a regular basis, in order to compute personal property taxes, where applicable.
And, even when the market is in a "slump", it is relatively easy to sell a house, apartment building or a vacant lot.
The reason that people want more options for Roth IRA investments is clear.
Stocks are tanking across the board.
Bonds and CDs are low yield items.
If you want to grow the account quickly, you need other ways to diversify.
Currently investors are in a unique situation.
There are many foreclosures.
Many bank owned properties are going up on the auction block.
If you have the funds, you can find properties well below their fair-market value.
If you have the know-how, you can make nice profits in a relatively short period of time and avoid capital gains taxes by using your retirement account.
More traditional Roth IRA investments are just not that profitable right now.
There are several steps to follow before you can begin.
First, you must set up a self-directed account with a custodian that offers everything allowed under the law.
You want an experienced custodian, one who is familiar with all of the relevant tax-laws.
If you have little experience in this sort of thing, you want to invest a little time in educating yourself or find an experienced investor that is willing to help.
If you make the right Roth IRA investment choices, your retirement can be just as you always dreamed, peaceful and secure.
