A few years ago, each of us discovered we can invest our IRAs and 401ks in real estate. We are not limited to investing in stocks and bonds and mutual funds. It seemed that way because that was all Fidelity, Edward Jones and Vanguard and the other investment advisors made available.
But, the IRS regulations allow a much broader range of investments beyond stocks and bonds. Many people have discovered this and have invested in real estate. We have done this through what is called a “Self Directed IRA”.
These Self Directed IRA investments work in the same way as the ordinary IRA investments. They remain tax-deferred until retirement age, regardless of the level of returns. There are rules and regulations that we must follow in order to receive all these benefits, but there are a number of excellent “custodians” or firms that specialize in assisting with Self Directed IRAs.
We see an increased return on investment potential with the freedom we have to invest in these alternative asset classes, such as real estate. We have an increased level of flexibility and control. We are able to make decisions based on our retirement needs and goals.
We find our Self Directed IRA investments in real estate allow us to diversify our portfolio mix. We are finding our retirement funds to be doing very well and we find we are experiencing less volatility along with better returns compared with a less diversified portfolio.
Our investor partners are using several firms to help with their IRA and 401k Self Directed IRA investments.