How To Invest In Real Estate With Your Self-Directed IRA

When it comes to your retirement plan, many people make the wise choice of maintaining their own control over their investments. After all, who wants to release years and years of hard-earned money to be invested by someone you don’t know in various unknown methods. By choosing a retirement plan such as a self-directed IRA, you can invest your money where you feel it would be most beneficial, including real estate. The self-directed IRA option may still be one of the lesser known options in the retirement planning world, but it offers you the freedom to control what will become of your retirement investments in a very hands-on way.

What’s Different About a Self-Directed IRA?

A self-directed IRA will allow you to invest in all the same avenues as any other IRA, but when you are in control there are added perks. There are investment opportunities available to you that would not be an option if done through investment houses, such as investing in small businesses, storage unites, land, homes, parking lots and even boat slips, according to Fox Business.

[at_ignore_tag]The Fox Business report explains that while the housing market still isn’t what it once was, and people may be worried about investing in it for that reason, experts agree that real estate is a smart long-term investment (something you definitely want to look for when it comes to retirement investments) that can result in high returns. A word of caution however, you should not get involved without the advice of professionals as there can be stiff penalties involved if your IRA is managed incorrectly, according to Bloomberg Businessweek.[/at_ignore_tag]

Things to Keep in Mind

You should not have unrealistic expectations going in, so a few things you may want to keep in mind are that number one, these things take time. Just like any other type of retirement investment, this is not a fast-paced, quick-reward setup. It is meant to give a good return on your investment over time and that is what you should expect. You also need to remember that the money generated from self-directed IRA real estate investments cannot be touched until after you retire. When you do begin to see returns in the account, you may be tempted to try and access the money, but as with all other types of retirement planning there are stiff penalties for early withdrawal.

When it comes to planning for your retirement the sooner you get started the better. Look in to what kind of investments are right for your future today.

[author] [author_image timthumb=’on’][/author_image] [author_info]Jake Alexander is an avid blogger who likes to discuss business and finance. Follow him @JakeAlexander17.[/author_info] [/author]

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