Real Estate IRAs – Can They Help Boost Retirement Security?
“Security.” It’s an important word, yet when many people think about their retirement, they find it hard to define. What is a secure retirement investment, and what are the vehicles that can help get you there? Does security mean that your money will always grow, or does it mean that your money is simply protected? In the world of Real Estate IRAs, you’ll find that retirement security can mean a great many things.
But how can you “boost” that security if you don’t first define it? In this article, we’ll take a look at the benefits of Real Estate IRAs and see how they can help ensure that you feel secure in your financial future:
Real Estate IRAs: Sound Investing with the Protection of Retirement Accounts
The first reason people choose to invest in retirement accounts? To save for retirement, of course. But the second reason always boils down to the fact that there are many benefits to IRAs, including the ability to watch your investments grow while you enjoy certain tax benefits. IRAs also afford protections against your other assets, which is a way of boosting your overall financial security.
But let’s get specific. What can you do within a retirement account like a Real Estate IRA in order to keep your money protected? In investing in real estate, you’ll be able to use non-recourse loans in order to secure leverage and acquire a property of significant value. Non-recourse loans are loans in which debtors can only come after you for the value of the asset in question—they can’t come after your other assets. Using this type of loan in conjunction with a Real Estate IRA is a great way to own property without feeling like that property owns you.
Choosing a Familiar Real Estate Type
It’s not just financial security that you should look for—you should also feel secure in the type of real estate investment you choose. Some people know certain types of investments more than others, and it shows in their choices. That’s why it’s important to remember that real estate investments through an IRA can be placed in all sorts of different real estate types, including:
- Single family homes
- Apartment buildings
- Commercial properties
If you know one market better than another, it can work to your advantage to use this freedom and choose a real estate investment type that better suits your own individual skillset and experience. Or you might simply choose the type of real estate that feels more secure for you; after all, security is more than just facts written down on paper—it’s also about peace of mind.
Building Wealth the Diversified Way
Finally, one of the most important aspects of Real Estate IRAs is that they help you to get over your attachment to the stock market.
The stock market isn’t a bad investment—true. In fact, many people make funds and bonds their first choice for their portfolio, and that’s a perfectly sound way to go about building long-term wealth. But if you want to truly diversify your portfolio, adding other types of asset classes than mere stocks and bonds will help you achieve the feeling of security that a stock ticker just can’t provide.
If you’re interested in learning more about Real Estate IRAs, be sure to keep reading here at AmericanIRA.com for more information—or you can call us at 828-257-4949 to get in touch with us. Be sure to visit our Real Estate IRAs section to learn more about the topic at hand and expand your retirement investing knowledge.