Self-Directed Wealth: Why You Need Real Estate In Your Life!
Making the right investments in a Roth IRA can mean the difference between a secure financial future and relying on Social Security and family friends. That’s probably not a nice way to put it, and it sucks… but it’s the truth.
With a self-directed Roth IRA, you have more options than in a traditional managed account. Right now, the options are exactly what you need.
Portfolio diversification has always been advisable, but now it is even more so. And, with stocks falling across the board, you may need to come up with some “one-off” ideas to continue growing your accounts.
Many people are turning to real estate for Roth IRA investments. With the right offers, it is possible to make a profit quickly!
Or, if you’re interested in long-term earnings, you can hold residential or commercial property and even uncultivated land in a self-directed Roth IRA for any number of years. Of course, you must choose the right custodian, since many brokers do not allow real estate transactions and other less traditional Roth IRA investments.
You also have to have time and knowledge. You need time to scan the newspapers for offers that seem potentially profitable. You have to have time to go see them, because what might look good in print might be located next to an abandoned house.
If the property needs renovation, you must have the time to do it yourself or the financial ability to hire someone. You can make purchases and repairs using self-directed Roth IRA funds.
In fact, if you have a property within the account, all expenses related to the property must come from the account. If you fall short, you can make an additional contribution, as long as it doesn’t exceed your annual maximums.
Homes and other property are allowable Roth IRA investments because they are considered easy to liquidate. But if you want to be sure that your business will be profitable or that your trustee will be able to sell it in the event of your death, then you must gain some knowledge.
If you have little or no experience, you can learn. However, if you don’t have time, you will need help. There are experienced investors who are willing to “take you by the hand” so to speak and show you the ins and outs of the business. These investors are people with previous real estate investing experience who have popularized the self-directed Roth IRA option. For example, individual account holders who have already been charged with using their personal funds to purchase, rehab, and resell property.
By using your retirement account, you could also avoid capital gains taxes, which is perfectly legal. In a single deal, you can earn over $20,000.00 more just from the tax savings.
This is just one example of where Roth IRA investments should go if you want to be wealthy later in life.