Real estate investments have long been favored assets to earn income. Whether individuals use these assets to earn personal income or to save for retirement, Midland IRA & 1031 is a powerful resource in helping investors achieve their goals.
Real Estate Investing with a Self-Directed IRA
Many people believe they are stuck with investing in stocks, bonds and mutual funds with their retirement money. In layman’s terms, this means you’re either resigned to settling on today’s paltry interest rates, or buckling up for the sometimes dramatic and gut-wrenching ups-and-downs of the stock market.
From an early age we are taught to invest in the stock market, and having a diverse portfolio that includes a percentage invested in stocks is a good idea. But, when many people begin saving money at a bank or brokerage they are not given the option of investing in real estate or other non-traditional assets. And, even though self-directed retirement plans have been available since the early 1970s, many people are still unaware that they can choose alternative investments outside the traditional realm.
Self-directed retirement plans are really no different than your typical individual retirement arrangement. These plans offer the same tax-sheltered status that plans housed with banks and brokerages do—with one critical difference: Instead of relying on a broker to pick and choose investments for you, self-directed accounts allow you to do the picking and choosing yourself. You have total control of your own investing funds, and the freedom to choose many different alternative assets, like real estate investments, to grow income for retirement. One of the most common alternative assets we see investors use for this purpose is real estate.
Self-directed plans with Midland IRA are able to invest in real estate—an ability that not all retirement plan administrators offer. All income gained from assets owned by your IRA grow on a tax-sheltered basis to secure your retirement future. As the account owner, you’re in charge of choosing your assets. Midland IRA works with you to ensure proper administration of your account is maintained within the rules and regulations of the IRS. You get the fun job. We take care of the details.
Real Estate Investing with 1031 Exchanges
If you have existing investment properties outside of your retirement account, Midland’s 1031 division can also help you defer taxes through 1031 exchanges. How does this help you? Well, when selling a property you can count on incurring some type of taxation on the proceeds of that sale. Federal, state, capital gain, healthcare, or income taxes may be due upon the sale of the property. However, by performing a 1031 exchange, you can defer and possibly eliminate federal and state taxes. A 1031 exchange occurs when you sell an existing investment property in conjunction with buying new investment property of equal or greater value within a certain time frame, using funds from the sale of your sold property. These transactions have huge benefits that can literally last a lifetime and dramatically decrease capital gain and other tax implications.
So, whether you are considering to use real estate investments to earn retirement income or for personal gain—Midland IRA & 1031 has a dedicated, experienced team ready to help you achieve your goals.
For more information on Midland IRA & 1031, call 239-333-1032.