The US
housing market is rebounding and the economic recovery strengthening. Real estate is an increasingly attractive for
investors looking to save for retirement. Investing in real estate can provide
portfolios with much-needed diversification as well as the potential for
capital gains
Personal retirement funds, like those held in self-directed
IRAs, may not be at the top of your list as a source of capital. Did you know that is possible to invest IRA
funds beyond stocks, bonds and mutual funds?
REAL ESTATE. Self-directed IRAs
give you the control over choosing your investments. You can use IRA funds to participate in
almost any form of real estate investment; from residential properties to
commercial properties; including farmland and boat slip.
Using an IRA to invest in real estate provides you with the
added benefit of investing with tax-advantaged dollars. When you, the investor
uses retirement dollars, in most, if not all cases, capital gains are avoided
and taxes on income from return on investment are deferred until it's time to
take distributions.
If you invest a Roth IRA, in many cases you can avoid paying
taxes on distributions or profit generated by the sale of the property
entirely. (In all cases, reviewing the investment with a tax professional is
always a good idea.)
Buying
and maintaining real estate in an IRA differs from traditional property
investments in a few important ways. Regardless of the asset type, the
investment purchased by IRA funds, will remain in the name of the IRA custodial
for that account.
There are also certain regulations that you need to be aware of
when it comes to investing in real estate with a self-directed IRA. One example
is that self-directed IRAs are prohibited from holding any assets that are used
for the owner’s personal benefit – so you client cannot buy a home with IRA
funds and then live in it.
Build your retirement wealthy now by investing your IRA funds in
to REAL ESTATE.
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