Investing in real estate can be a great way to grow your wealth, and doing so with your retirement savings offers a unique opportunity for long-term financial growth. Here’s how you can leverage your retirement funds to invest in real estate.
Use a Self-Directed IRA (SDIRA)
A Self-Directed IRA (SDIRA) allows you to invest in a wide range of assets beyond traditional stocks and bonds, including real estate. With an SDIRA, you can buy rental properties, raw land, or even invest in real estate development projects. However, there are rules to follow—such as not using the property for personal use and ensuring all property-related expenses are paid through the IRA. Any income from the property must also flow back into the IRA.
Consider a Real Estate Investment Trust (REIT)
For a more hands-off approach, you can invest your retirement funds in Real Estate Investment Trusts (REITs). REITs are companies that own, operate, or finance income-producing real estate. You can invest in REITs through traditional retirement accounts like 401(k)s or IRAs. They offer the benefit of diversification, liquidity, and the potential for dividend income without the need to directly manage property.
Leverage a Solo 401(k)
If you’re self-employed or run a small business, a Solo 401(k) offers another way to invest in real estate. Like an SDIRA, a Solo 401(k) allows for broader investment options, including real estate. You also have higher contribution limits, which means more capital for your real estate investments.
In Conclusion
Investing in real estate with retirement funds can diversify your portfolio, offer passive income opportunities, and provide long-term growth. Whether through an SDIRA, REITs like Future RE Capital Investments I, or a Solo 401(k), be sure to understand the tax implications and rules associated with these accounts to maximize the benefits. Always consult with a financial advisor to ensure it aligns with your retirement goals.
Join Us For Our Free Online Event!
USING YOUR RETIREMENT TO INVEST IN REAL ESTATE
Sponsored by Future RE Capital Management & eQRP
Join Matthew Brauer of eQRP and Future RE Capital Management in this FREE Online Event to learn more about what an eQRP is and how you can use your retirement to invest in real estate and other alternative assets.
Friday, October, 18th, 2024
1PM – 2PM
Cost: FREE
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