Diversify Your Retirement Investments With a Real Estate IRA
Today’s real estate market is making for some great opportunities. With the power of Individual Retirement Account (IRA) investments, all gains are tax-free within the account. With an IRA, you can buy real estate as easily as you can invest in mutual funds.
It is important for all investors to note that every deal or piece of property is unique, and it is important that you have adequate information and representation. It is advised that all investors consult their tax and/or legal counsel when making an investment in real estate. Also, proper planning can go a long way toward a successful transaction. Self-direction means freedom of choice, but it also means that it is your responsibility to be sure that the real estate you are investing in is the right fit for you.
WHY REAL ESTATE IRAS?
All the proceeds from the sale of a piece of real estate in an IRA can be reinvested into your next property without having to give a large percentage to the government as federal and state taxes. This will allow you to have more principal for you to grow for your retirement funds. If you are a successful real estate investor, this could be your opportunity. Real estate in an IRA can be a powerful investment tool.
Over time, real estate investments have opened up a world of appreciation and retirement income for many investors. The purchase of real estate through a self-directed retirement plan is a popular investor choice for this and other reasons.
A self-directed IRA or real estate IRA gives you the freedom to invest in many different types of real estate including:
- Single-family and multi-unit homes
- Apartment buildings
- Improved or unimproved land
- Commercial property
- And more!
Please note, investing in real estate can be hard work. There are nuances (prohibited transactions and disqualified persons) involved exclusively with real estate IRAs that require you to stay on top of the investment and follow all rules. Please be sure to consult your financial advisor or real estate advisor before starting any transaction.
If you have any questions about this article and would like more information, please feel free to contact Midland at 239-333-1032 or www.midlandtrust.com.