Overseas Properties in a Real Estate IRA

Many of our clients are actively looking to diversify their retirement portfolios by using Self-Directed IRAs to invest in overseas assets. Often, this includes investing in foreign property using a Real Estate IRA.

Is it legal to purchase overseas property in an IRA? 

Yes, since the birth of IRAs in 1974, it has been legal to purchase and own overseas property using Real Estate IRAs. You can buy and sell properties, collect rent, and do anything you can do with domestic real estate in an IRA, provided you observe all the rules concerning prohibited transactions.

Can I take out a mortgage or borrow money to buy an overseas property for my Real Estate IRA

Yes, you can. You can borrow from any willing lender who is not a prohibited counter-party. Prohibited counterparts include yourself, your spouse, your children or grandchildren or those of your spouse, your parents and grandparents or those of your spouse, or any entities any of these people control.

If you do take out a mortgage, it must be on a non-recourse basis. That is, you cannot sign a personal guarantee for the loan. Any collateral for the loan must come from within the IRA itself.

You should also be aware of any local laws and regulations that may affect mortgages in the country in which you are investing. Most other countries will not recognize your IRA as a legal entity.

How can I purchase an overseas property using a Real Estate IRA

To buy property for a Real Estate IRA, you need to establish an account with a custodian or administrator that will support self-directed/real estate transactions ahead of time. You cannot buy the property yourself, thinking that you can transfer it into your Real Estate IRA later. That would essentially be causing the IRA to purchase the property from yourself, and that constitutes a prohibited transaction.

Instead, set up an account in advance with American IRA, LLC, and fund it. In most cases, clients fund their Real Estate IRAs using rollovers from existing IRA accounts. You can also contribute up to $5,500 in new money per year to a Traditional or Roth IRA. If you are over age 50, you can contribute another $1,000 in catch-up contributions.

If you want to make larger contributions, and you have a business or self-employed income, you may consider setting up a small-business retirement plan like a SEP IRA or a Solo 401(k).

Set up a trust or local entity in the host country. 

Most countries do not recognize IRAs as a separate legal entity. That means that while you may have limited liability protection in the United States, you will not have any in the property’s host country. If a tenant sues you in local courts, they could go after you personally, and possibly seize other assets you own within the country.

Consider having a local attorney help you set up a limited liability entity that will help you limit your liability, just as you would set up a corporation or LLC within the United States to protect your personal assets if someone should sue the business.

Purchase the property. 

Again, it is best not to try to handle the transaction yourself, directly. Instead, send all necessary documentation and instructions to American IRA, LLC, to purchase the property on your behalf, using funds within your funded Self-Directed IRA account. Verify the purchase was completed correctly.

Note, the property cannot be titled in your name directly. The title has to go to your IRA, or to the entity within the IRA, with your IRA listed as the owner.

Disqualified parties may not reside in the Real Estate IRA property. 

Unless you are ready to withdraw the entire property from the IRA, and pay taxes on the transaction, you, nor any disqualified person to your IRA can physically stay in the property; even if market rent is paid.  You cannot use an IRA to own your own vacation home overseas. If the IRS finds out, they could force you to take the entire value of the account as a distribution, costing thousands in taxes, penalties and legal bills.

Study: Fair Sailing Ahead for Real Estate IRAs

Real Estate IRAs have had a very nice run over the past several years. And 2018 looks like another positive year for real estate overall. The Urban Land Institute’s 2018 Real Estate Trends Report predicts a smooth year of appreciation for real estate assets in or out of Real Estate IRAs.

Some of the highlights from the report:

A “sudden drop” in the housing market is unlikely. Real estate utilization rates are going up as millennial’s begin to gain traction in the housing market.

A “soft landing” is more likely to cap the current expansionary cycle than a real estate recession. The economic cycle has surely not been repealed, but there are no major economic trends that currently threaten real estate as an asset class in the United States. Part of the reason for the soft landing prediction is the modest to slow pace of the recovery. Real estate more or less kept pace with overall economic expansion, which means real estate prices did not get so far ahead of fundamentals and price supports as they did during the sunup to the 2008 mortgage crisis.  We are not seeing the late-cycle optimism that characterizes asset bubbles – at least in real estate.

Real estate is also getting a boost from the strong economy as well as a booming stock market. Granted, the stock market could take a nasty correction tomorrow – one important reason why we recommend using Self-Directed IRAs to help diversify your portfolio away from stocks. But the strong job market looks more permanent, as companies do not like to to through the expense of hiring people whom they are not confident will stay on board for a good while.

The report also identified a stubborn shortage of housing supply that will continue to boost real estate for some time to come. Even high real estate appreciation and price levels is not leading directly to new supply in some Real Estate IRA markets. The study identified these markets as experiencing high price appreciation but very low supply expansion:

  • Washington, D.C.
  • Brooklyn
  • Orange County
  • San Francisco
  • San Jose
  • Miami
  • Fort Lauderdale
  • Seattle
  • Portland, OR
  • Inland Empire, CA
  • San Francisco


The Institute also recommends that investors focus more on rental income than price appreciation at this point in the cycle. Many markets are comparatively mature, as investors have bid up prices to match expected rental revenues. Some areas may be fully priced. But as long as employment remains strong, rental income should be steady and reliable, for the most part. Concentrate on cash flow and careful asset management.

One opportunity for a Real Estate IRA investment is senior housing. As of 2016, there were 49.4 million U.S. residents aged 65 or older, or about 15 percent of total population. By 2030, that figure is projected to grow to 75.5 million, or 21 percent of the population, according to the U.S. Census Bureau.

Yes, an individual landlord can devote some or all of a real estate portfolio to homes or condominiums that may have appeal for older Americans. Another way to play it would be to invest in private equity or private debt placements or REITs that focus on senior housing development.

Protecting Real Estate IRA Properties from Wildfire Risk

This month’s devastating fires in Northern California are heartbreaking to behold. As of this writing, fires in Santa Rosa and surrounding areas have taken the lives of at least 15 people and destroyed some 1,500 structures within just 12 hours. Hundreds of homes have been totally destroyed, as have a number of vineyards and wineries as at least 115,000 acres have gone up in flames. Thousands have been forced to evacuate.

Real Estate IRA investors need to take steps to protect their investments (and their tenants) against the risk of wildfires. Here are some actions you or your property manager can take to lessen risk to your retirement security and more importantly, safeguard the lives of your tenants.

  • Create a defensible space around the Real Estate IRA This means eliminating possible fuel that wildfires can consume while beating a path for your property. In practice, this means clearing space at least 100 feet away from your home and other flammable structures. This defensible space is what officials at the National Fire Protection Association call the “home ignition zone.” If fire penetrates this zone, the house is likely to go next.
  • Obey evacuation orders from authorities and insist that your tenants do the same.
  • Keep the lawn mower short, especially during the summer and fall wildfire seasons for most of the country.
  • Remove lawn cuttings and other foliage debris as soon as you cut it. Don’t let dead leaves and dry cut grass pile up.
  • Trim or remove trees near the house. Eliminate dry or dead foliage. Prune branches so that none are hanging below 6 to 10 feet from the ground.
  • Clear debris from roofs, yards and gutters
  • Pull dead vegetation and other junk out from under decks. Don’t store anything under decks.
  • Clear dead vegetation and other fuel sources from within 10 feet of the home.
  • Check your roof tiles. Are any missing? Replace them. These tiles are crucial to fending off burning embers.
  • Install wire mesh in all vents – not more than 1/8th of an inch.
  • Contact your landlord’s insurance or fire insurance carrier. Some companies have teams of people that will visit your property and provide a fire risk assessment free of charge. Sometimes they will apply a fire-resistant spray coating to key areas of the home.
  • If your insurance company does not offer the site assessment service, contact firewise.org/riskassessment to arrange one.
  • Replace mulched areas with “hardscaping.” Emphasize landscape ideas using gravel, rock and stone, rather than plants. It’s lower-maintenance anyway, once you get it in place. At a minimum, get mulch and plantings at least five feet away from the foundation.
  • Coordinate fire prevention and mitigation efforts with neighbors. The more steps your neighbors take to protect their properties, the safer your properties are, too.
  • Invest in fireproof or fire-retardant materials in all your Real Estate IRA
  • If you have plantings, use low-flammability plants.
  • Don’t stack firewood against the house.
  • Separate grasses, shrubs and trees near your home, to prevent a ‘fire ladder effect’ that can quickly transport flames to your roof.
  • Paint your street number clearly on the curb and prominently on your mailbox as well as on your home.
  • Invest in fire-resistant windows. Windows are a vital defense to fires. If a window breaks, embers can enter the home and quickly ignite flammable belongings inside like drapes and blankets.
  • Sign up for automated emergency notifications. Your homeowner’s and landlord’s insurance agent can help with this.
  • Check and double-check smoke and fire alarms in your Real Estate IRA
  • Conduct an occasional check on your property to ensure tenants aren’t creating fire hazards.

The REIT vs. the Real Estate IRA

If you’ve considered a Real Estate IRA and other real estate investment vehicles, you’ve probably heard of a REIT: a Real Estate Investment Trust. But what are REITs, and do they really have advantages over a Real Estate IRA? Let’s take a look:

Defining the Real Estate IRA

First, a Real Estate IRA is a Self-Directed IRA wherein you invest in direct ownership of real estate. It’s that simple. You can invest in a number of different types of real estate within an IRA, including townhouses, raw land, single family homes, duplexes, apartment buildings, and many types of commercial property. This allows for a great amount of freedom and flexibility for real estate investing, and allows retirement investors to own tangible, income-generating assets as part of their retirement portfolio.

Defining the REIT

Investopedia defines the Real Estate Investment Trust as “a type of security that invests in real estate through property or mortgages and often trades on major exchanges like a stock.” You might think of it as a “stock for real estate.” It’s an interesting way for people to invest in real estate the same way that they might invest in stocks…but when it comes to full ownership of tangible real estate assets, you have more direct control over the asset than when you have a 3rd party REIT involved. Many times the ownership of tangible real estate out performs a REIT.

Benefits of Investing in a Real Estate IRA

If you want to include real estate in your investments, then a Real Estate IRA offers you a number of options and protections. First, it allows you to leverage real estate (the secret to increasing yields) using a non-recourse loan, in which a lender can only come after the full value of the property in question should you default on the loan. This adds a layer of protection for your overall net assets even in the case of default. Even for investors who don’t have to worry about default, this is often seen as a great “peace of mind” option.

There is also a tremendous amount of freedom in investing with a Real Estate IRA, including the aforementioned ability to invest in a whole range of different real estate types. For many people, this is a great way to diversify their assets across a broader range of classes.

If you’re more of a “buy and hold” investor, then a Real Estate IRA is more in your wheelhouse, as REITs are known for their higher degree of liquidity. If you want to generate a long-term income and focus on building wealth over the long-term for retirement, a Real Estate IRA might be just what you need.

Benefits of REITs

That isn’t to say that REITs are without their advantages. They’re highly liquid and typically offer high dividend yields. What’s more, they offer investors a way to diversify out of stock equities and give them a broad range of investments in their portfolio.

Think of REITs as mutual funds for real estate. They come with diversification and this can be important for anyone who wants to diversify their portfolio. But you won’t own 100% of a tangible real estate asset by owning part of a REIT, since your shares are only part of the trust. A solid Real Estate IRA investment has potential to yield a truly life-changing retirement income.

What next?

REITs and Self-Directed IRAs really aren’t in the same wheelhouse even though they’re both in the world of real estate investment. It’s a bit like comparing owning a stock to owning a private company. That’s why investors should consider all options when they formulate a retirement strategy. If you’re interested in learning more about a Real Estate IRA and what it can do for you, contact us at 828-257-4949.

Real Estate IRA Owners Report: Southland Dominates Top Markets To Watch

Pricewaterhouse Coopers has released its 2016 Emerging Trends in Real Estate report, and as expected, our clients in a Real Estate IRA have some good markets to choose from. Encouragingly, PwC has identified several markets here in the Southeast in the top 100 most attractive markets when it comes to real estate prospects.

For example: Four of the top five most attractive Real Estate IRA markets for investment, development and homebuilding are right here in the Southland. PwC’s researchers ranks the top five markets for overall real estate prospects as follows:

  1. Dallas/Fort Worth
  2. Austin
  3. Charlotte
  4. Seattle
  5. Atlanta

That’s terrific news for our North Carolina Real Estate IRA clients but there’s more:

Other southern cities that made the grade for PwC include Nashville (#7), Raleigh/Durham (#11), Miami (#19), Washington, DC – District (#24) and Charleston (#25).

Tampa/St. Petersburg comes in at #29, and the Washington DC – Northern Virginia area takes #32, and Baltimore number 35. But Greenville makes it to #38.

Interestingly, Detroit – usually in the top few slots in other rankings we’ve seen in recent years thanks to the deep value possibilities of that depressed market – doesn’t show up until #33. That’s not shabby by a long shot. But that ranking is unusually low for Motor City compared to most of the other lists we’ve seen in recent years.

Orlando, Fort Lauderdale and Palm Beach come in at #40, 41 and 44, respectively, with Cape Coral/Fort Myers/Naples in at 46. Louisville is #50.

Looking at our Carolina-area markets, Columbia comes in at a respectable 56.

However, it’s not just the raw number rankings that we find intriguing. It’s also the changes from last year.

Houston, for example, fell from number one down to number 30. A big part of that is probably oil prices.

The big, expensive “gateway” city markets fell as well: San Francisco fell from #3 to #8. Los Angeles, Boston, Manhattan and even Chicago fell as well, compared to last year.

Meanwhile, Miami moved up in the rankings, and Tampa and Orlando both climbed substantially compared to last year, on the strength of economic improvement in the Southeast generally, but also, no doubt, on the natural historic volatility of the Florida region. It always seems to fall most precipitously in busts and zoom most spectacularly in boom times.

The Southeast region should benefit in coming years from retiring northeastern Baby Boomers transitioning to snowbirds buying and renting homes in Florida, at least for part of the year, as well as in Georgia and the Carolinas, where these folks are called “halfbacks.”

That is, they check out Florida and then they go ‘halfway back’ to the Northeast and settle in the Carolinas.

Hey, we’re happy to have them – and North and South Carolina are starting to benefit from this phenomenon, as well as increasing investment and opportunity in our own non-gateway cities, most notably in the well-known ‘Research Triangle.’ Between Raleigh, Chapel Hill and Durham.

Looking to increase diversification and potential returns via direct ownership of real estate within a Real Estate IRA? Contact American IRA, LLC, one of the leading experts in the country on administering real estate transactions and cash flows within retirement accounts. You can peruse a first-in-class library of information at our website, www.AmericanIRA.com, or call us directly at 866-7500-IRA(472).

We look forward to working with you.



Real Estate IRA – Are You the Type of Investor Who Fits

Most of us have the same financial goals. We want to take care of our families. We want to take care of ourselves. We want to work towards retirement with confidence that our decisions are the right ones, and we want to see our wealth grow. We want to retire with plenty of money left over for a comfortable lifestyle, happy and peaceful knowing that we’ve done enough to take care of ourselves should disaster strike. So what does this all have to do with a Real Estate IRA?

A Real Estate IRA is one tool you might have for getting to that goal. Although many of us share the same goals, the strategies which we employ to achieve those goals can vary. And for some people, a Self-Directed IRA invested in precious metals might be one way to get there. For other people, a Real Estate IRA might be more suited to their knowledge and experience.

How do you know if you’re the kind of person for whom a Real Estate IRA might work out? We thought you’d never ask.

Common Questions about Handling a Real Estate IRA

One of the best ways to examine whether or not you might be the type of investor who can get the most out of retirement investing in real estate is to look at a few of the common questions when it comes to retirement strategies:

  • How is your tolerance to risk? (The younger you are, generally, the higher your tolerance to risk should be. The older you are, the more you’ll want to protect the assets you’ve already built up.)
  • Are you okay with utilizing leverage to expanding the possibilities of your investments, or are you more interested in a “savings plan” style of retirement investing?
  • Do you believe in the value of real estate long-term, or do you view it more as a speculative kind of investment?

The answers you had for the above should be obvious: if you have a higher tolerance to risk, if you like utilizing leverage to expand your flexibility, and if you believe in real estate as a long-term source of wealth, then there’s a good chance that real estate investing through a Self-Directed IRA is a viable option for you.

If You’re Too Averse to Real Estate Risk

Like all investments, real estate comes with certain risks. There’s no guarantee that the price you paid for what you buy will be the same as it is tomorrow. Many of us know this—in fact, the very idea of investing is that you’ll generally be able to predict the future well enough that you can turn a profit.

But if you’re too averse to the kind of risk that comes with utilizing leverage in your retirement portfolio, consider this: you can utilize an IRA with non-recourse loans; in fact, it’s a requirement. That means that if you default on a real estate loan in your Real Estate IRA, the lender can’t come after you for your other assets. This isn’t an ideal scenario, granted, but it provides a buffer between your real estate investments and your portfolio at large. People with smaller tolerance for risk find that this is one advantage that helps turn them on to the idea of real estate investing…but only if it’s done properly.

To learn more about how real estate investing for retirement works, call us at 828-257-4949 or continue browsing AmericanIRA.com. Here you’ll learn all about different types of investment options available to you when you direct your own IRA.

Real Estate IRA – Why want one in This Day and Age?

We live in a digital world. We log onto the Internet all the time, and check our stocks. In the information age, it can sometimes seem strange that you would ever want a Real Estate IRA that included something of real value like real estate or gold and precious metals.

In fact, some people aren’t even aware that they can include these investments in their Real Estate IRA. Instead, they simply follow the traditional advice – which usually nets them a complete reliability on the strength of the stock market.

Why would anyone consider an alternative, like a Real Estate IRA? As it turns out, there are a lot of reasons. In fact, there are so many reasons that we can only list a few of them here. But as you’ll see, it’s not very difficult to understand the power of a Real Estate IRA; what’s difficult is seeing the signs out there that your retirement portfolio needs more than a few mutual funds.

A Real Estate IRA Can Help You Generate an Income After Retirement

Because real estate is so conducive to generating an income – you are, after all, frequently renting it out – it can be ideal for someone who wants an income in retirement but isn’t sure they’ll be able to rely on the traditional means. In your retirement days, you don’t want to simply withdraw money from an investment account and hope that you don’t outlive it – that’s essentially a savings account. An investment account should continue to generate money for you even after you withdraw some of it to live off of.

Not Everyone Trusts Social Security to Handle their Income

Many people these days rely on social security to get by. But the truth is, social security hasn’t always been around. People were able to generate retirement income for themselves before the days of social security. And if you don’t trust social security alone to provide yourself with the income you’ll need after retirement, then the time to take action is now. A Real Estate IRA is a great way to look at a different way of generating that income.

You May Well Outlive Your Retirement Account

As mentioned earlier, it’s important to make sure that you have a consistent investment that continues to generate value for you even after you’re done working. An investment account that essentially serves as a savings account won’t do you any good, especially in this day and age when many people can be in retirement for thirty years – and more!

Pensions Can No Longer Be Relied Upon

Although some fully-funded pensions out there are still able to offer a high degree of security after you retire, that doesn’t mean that pensions as a whole are doing the job of keeping retirees in income. A Real Estate IRA is another way to look at retirement income that doesn’t require that someone else fund it, which will help ensure that your own security is taken care of. It will also help you achieve peace of mind that many people, sadly, do not have.

Taking Action Now is Always Important

No matter what you do for retirement, you have to get planning now. After all, there are few ways you can plan for retirement the older you get; when you’re younger, however, you have more options available to you – options like Real Estate IRAs. Be sure to call us at 828-257-4949 if you want to know more about Self-Directed and Real Estate IRAs, and keep on browsing our site to learn more about how to secure a better future for yourself.

Real Estate IRA – How to Maximize the Value

If you want to secure a financially free and happy retirement, you’re going to have to get the most for your money with a Real Estate IRA.

Everyone knows that; no one’s debating it. The problem comes when the rubber meets the road. How do you maximize the money you earn? How do you make sure that your strategies to maximize your retirement portfolio’s value are the right ones? We can think of no better way to demonstrate how to maximize the size and value of your portfolio than through the Real Estate IRA.

A Real Estate IRA is simple: it’s a Self-Directed IRA in which you invest in real estate. By adding real estate to your retirement portfolio, you diversify; sure, real estate prices are something of the product of the economy at large, but real estate is also separate from the stock market in many ways. And if you’re interested in real estate, you know that it’s important to make the wisest investments possible so your real estate is earning you money even while you pay it off. Here are some of the ways you can maximize the value of your Real Estate IRA in order to secure that kind of financially free and happy retirement:

Utilizing Leverage in a Real Estate IRA

The first strategy is simple: leverage. You borrow money to make a purchase you otherwise wouldn’t be able to make. In real estate, the strategy is simple: your goal is to earn more money in charging rent than the real estate itself costs. That way, you can earn money even while you’re paying off the loan; and at the end of the loan, you own the real estate free and clear, which means you’re free to collect even more profit. That’s maximization at its finest.

In borrowing through an IRA, however, you will have to know the rules if you want to maximize value. Specifically, loans to a Real Estate IRA are to be non-recourse, which means that a lender can’t come after the rest of your assets if you default on the loan. This is good for offering your overall net worth protection even while you invest in real estate. Another rule is that you can’t live in the real estate in which you invest with your IRA.

Getting the Most of Retirement Investment Flexibility

One of the most attractive aspects of investing in real estate through an IRA is that you have a lot of options. By Self-Directing your IRA, you’re free to invest in a range of different real estate types, including:

  • Raw land
  • Condominiums
  • Single family homes
  • Townhouses
  • Commercial property
  • Apartment buildings
  • Duplexes

With all of these options available to you, you’re able to choose the type of real estate investment that makes sense for your situation. For example, if you don’t have a lot of money but you are interested in investing in real estate, you can look at raw land as an option—undeveloped real estate tends to be the cheapest, depending on a number of factors. Matching your strategy to the type of real estate is important for making sure that you’re as efficient with every dollar as possible.

If you want to learn more about real estate, check out our section on Real Estate and Real Estate IRAs or call us at 828-257-4949. We’ll be glad to talk to you about the concept of Self-Direction and what it might mean for you. At the very least, you can explore our website to learn more about Real Estate and self-directing—and the ways in which they can help you plan for your retirement.

Real Estate IRAs – Dispelling Common Objections

When it comes to investing, there’s a lot of information out there—and a lot of misinformation as well. Being able to tell which is which is one of the keys to educating yourself as an investor and keeping your retirement investments secure, safe, and stable over the long haul. That’s why we love to dispel some of the common myths and objections when it comes to Self-Directed IRAs—and today, we’re tackling Real Estate IRAs.

Are we saying that all objections or questions to Real Estate IRAs—or Self-Directed IRAs in general—are meritless and without value? Of course not. But by the time you’re finished reading this article, you should have a solid grasp of which objections you might want to consider…and which ones really aren’t objections at all:

Common Objection #1: Real Estate IRAs Leave You Little to Invest With!

The idea of contributing, say, $100 per month to an IRA is easy when you’re investing in stocks and mutual funds. When you’re investing in real estate, many people understandably wonder how a similar strategy might work when it comes to Real Estate IRAs.

The truth is, you can use leverage in a Real Estate IRA as long as you use non-recourse loans. These types of loans help protect your overall portfolio, because it means that a lender can only come after the asset in question—not the rest of your money. But the point here? The fact that you can utilize leverage to invest in real estate, even from within a Real Estate IRA.

Common Objection #2: But Real Estate Isn’t Stable!

What investment is? Even the stock market, one of the most consistent-performing investment vehicles out there, can be difficult if you don’t know how to manage it. You have to make sure that your assets are diversified, you have to make sure that you don’t sell everything just because of one or two bad years, and you have to ride out any potential economic crisis with an eye on long-term gains. Is it really so different from the real estate market, where you place an eye on long-term value…with the possibility of collecting rent for short-term income? In some cases, real estate can be just the kind of stability people need to secure for themselves a retirement income.

Common Objection #3: Real Estate is Hard to Manage

True: if you’re acting as landlord and property manager, you’re going to have a heck of a time handling everything. But when it comes to Real Estate IRAs, you’ll hire a property manager to handle the basics. They’ll see to the maintenance of the property and to dealing with tenants so you don’t have to—in many ways, this makes real estate investments much like any other type of investment, wherein you simply have to sit tight and hope for it to grow over time.

Common Objection #4: Most People Don’t Know Real Estate Well Enough to Invest

A valid objection, but should it be prohibitive? Consider how little most investors truly understand about the stock market…yet still understand that if they make the right decisions, they can stand to benefit from having their money in the market after a long period. Real estate doesn’t have to be very different.

If you’re looking for alternative investment vehicles to round out your retirement portfolio, now might be the time to consider Real Estate IRAs. Call us at 828-257-4949 to learn more about Self-Directed IRAs or simply keep visiting AmericanIRA.com to learn more and see if you can’t dispel a few other myths about retirement investing.

Real Estate IRA – Four Signs It’s Time to Consider One

The Real Estate IRA might just be one of the best ways to diversify out of the stock market and feel more secure about your retirement plans…yet there are many investors across the country who have yet to even get started with this type of retirement account of their very own. Some are hesitant because they’re not sure about the real estate market…and others don’t know what constitutes “ideal timing.”

But if you want to build a secure nest egg for your retirement, the ideal time to take action is now. Not only will taking action now help you to find answers to some of the most common questions out there, but it will help convince you that the best answer for your retirement investment questions was standing in front of you the whole time. Let’s take a look at four of the most common signs that it might be a good idea for you to consider a Real Estate IRA as well:

#1: You’re interested in a Real Estate IRA because you’re not satisfied with the stock market.

Conventional wisdom dictates that you put a majority of your money in the stock market, watch it grow over time, and call it a retirement. But are things really that simple, especially if you don’t have as many years before retirement as do twenty-year olds out of college? Some portfolios are rightly less tolerant to risk.

Securing real estate investments through your IRA won’t remove you from economic woes, but it could give you something to fall back on when the stock market tanks. True diversity isn’t just about what kinds of investments you have in stocks—it’s about where else you look for security, as well.

#2: You’ve had it with bonds.

Bonds are seen as one of the top ways to secure a retirement income for yourself—but they’re not the only way to secure an income. Sure, bonds are dependable and highly predictable. But there’s an opportunity for growth as well as income if you turn to a Real Estate IRA and consider how a regular rent check might help you live through retirement on a worry-free basis.

#3: Retirement is coming up and you need a source of income.

Speaking of income—if you need it quickly and need to turn a larger amount of liquidity into an income, real estate should be one of your first considered options. Why? Because an investment in profitable real estate is one of the best ways to ensure that you start generating income in time for your retirement. With enough real estate secured in your IRA, you can have plenty of income to live off of and continue to build wealth if the real estate market is improving. This gives you plenty of financial freedom—even if you need to achieve that financial freedom quickly.

#4: Your portfolio isn’t diversified.

If your portfolio is all in stocks and you find yourself fretting every time you check the tickers, maybe it’s time you consider a different kind of investment in your retirement portfolio. That isn’t to say that you should abandon stocks, of course. But stocks should not be the end-all-and-be-all of retirement investments.

Check out our section on Real Estate IRAs if you’re interested in learning more about the advantages you can employ in a Real Estate IRA. You’ll be surprised at how secure your money really can be through a Real Estate IRA—and if you have any questions about it, don’t hesitate to contact us at 1-866-7500-IRA(472) to learn more about Self-Directed IRAs and how they can help you manage a secure retirement nest egg.