Self-Directed Real Estate IRAs
Historically, real estate has provided many Americans with a stable investment vehicle that provides both income and appreciation. One of the greatest tools available to real estate investors is government-sponsored retirement plans, such as IRAs.
Very few Americans realize that they have the option to self-direct their IRAs and other retirement plans into real estate, and therefore, benefit from the tax advantages those plans provide. Investments in IRAs gain from tax-deferred profits or in some cases tax-free profits. Imagine not having to pay taxes right away, or ever, on your real estate deals. Instead of paying 25%, or 30%, or even 50% of your profits to the government in taxes, you get to keep it.
Unfortunately, most investors believe that their only IRA investment options are bank CDs or the stock market and mutual funds, not real estate. If you currently are a successful real estate investor, or are just looking to diversify your retirement portfolio, the combination of real estate and your IRA can be very powerful.
The tremendous advantages a real estate IRA and other self- directed retirement plans can yield include the following:
- The power of compound interest
- Reduction of taxable income
- Asset protection
- Estate planning
When you combine the advantages of a self-directed IRA with your knowledge of real estate, you’ll see that IRA investments give you the ability to compound investments tax free/deferred. The rate of return on your investments will be based on your knowledge and expertise in real estate; IRA investing is not based on the ups-and-downs of the stock market.
Contact New Direction Capital for more information.