Real Estate IRA -The Good Life: What Retirement is like with a Healthy One

How do you picture retirement? If you’re like most people, you picture it laying on a beach with a cool drink in your hands and not a worry in the world. And others might view a more active retirement, full of hiking and adventure—but still, not a worry in the world. There’s a common thread here: retirement for most people should be worry-free. And a Real Estate IRA can help get you there.

Why a real estate IRA, in particular? Why not any other type of investment? The truth is, many investment types can help you build a large nest egg and secure an income for your twilight years. But healthy real estate investments can be particularly good for a worry-free lifestyle, what some might call the “good life.” Here’s why.

The Many Benefits of Investing with a Real Estate IRA

How can you get on that beach with a cool drink in your hand? Consider a few of the following benefits and see if you wouldn’t appreciate having them in your life:

  • With a Real Estate IRA, you’ll be required to work through a property manager, who collects rental income, handles the property, and pays expenses. In the meantime, you get to sit back and watch the profit collect in your retirement account tax free or tax deferred.
  • By utilizing a Roth IRA, you can collect rental income tax-free, which helps support your retirement security with even less worry than actual earned income! Needless to say, this is a key advantage for anyone who needs to maximize every penny of their investments and generate the most possible value for their retirement.
  • Borrowing money within your Real Estate IRA has to include non-recourse financing, which means that even if you default on the loan, the lender can only come after the property itself. You would still be protected in such an event, which helps you maintain more overall financial security.
  • If you sell property within your Real Estate IRA, you won’t have to worry about so many capital gains taxes as you would in a traditional investment account.

This all adds up to an interesting conclusion about real estates and Self-Directed IRAs: there are so many benefits to working through a Real Estate IRA that it’s tempting to get involved with real estate investing just for the IRA advantages!

Utilizing a Real Estate IRA as Much as Possible

Of course, for you to enjoy that Caribbean beach with a cool drink in your hand and not a worry in the world, you’ve got to maximize the value of your investments and make sure you utilize them in accordance with your own retirement strategy.

What does this mean? There are two essential ways of getting a return on your investment with real estate: generating income through those real estate investments, and an increase in property values when you sell the real estate.

Real estate is one of the few investments that can yield those returns at both stages—it can grow in value over time and provide you with income even as you hold the investment. Utilizing real estate within an IRA becomes even more vital because of the tax protections that come with a retirement account. Anyone who wants to invest in real estate should consider this type of investing in order to maximize the return on their investment.

If you’re interested in learning more about real estate and investing in real estate through a retirement account, be sure to keep reading our articles here at, consult our real estate guide, or call us at 828-257-4949.