Real Estate IRAs -Four Reasons You Need One

Ask any person on their street what their retirement plan is and you’ll likely get some variation of the same answer. “I have my retirement plan through work.” “I have an IRA in mutual funds.” Some might even say “I wish I had a retirement plan!” But no matter what variation of those three answers you get, there’s always something missing: people don’t realize there are other types of investments through which to build a retirement nest egg. And Real Estate IRAs are one of the most powerful ways to ensure that you’ll have an income even in retirement.

But once you throw a few words in front of an acronym like “IRAs,” peoples’ eyes glaze over. “Great,” they think, “just another type of investment account for me to learn about.”

But truthfully, Real Estate IRAs are far simpler than they sound—and many “average” investors are able to use the advantages of a Self-Directed IRA to build a retirement that includes more than just the stock market.

If that’s not enough for you, here are four reasons you should start considering this kind of investment:

  1. Real Estate IRAs allow you to invest in something other than the stock market.

When the stock market’s up, everyone feels good. They think they have investments figured out, that their nest egg is secure, and that they don’t have to lift a finger to build wealth easily and quickly.

Then, the market corrects itself—or worse yet, takes a turn for the worse.

Having all of your money in one single investment type is not a great way to achieve true diversification in your portfolio. Having money in different asset types, however, including common investments like real estate and precious metals, helps you to not only feel secure about your retirement, but builds actual long-term security.

  1. You can apply leverage with this IRA type.

“Leverage” in this case refers to taking out a loan—you can indeed take out a loan to fund the real estate in your IRA. This helps make real estate more affordable to anyone who wants to include it in their portfolio. All loans must be non-recourse, which means that if you default on the loan, the lender can’t come after the rest of your wealth—just the money they loaned to your IRA. This affords you protections and allows you to build with efficiently and with real security.

  1. Real estate is a great way to build independent income.

The days of expensive pension plans and the secure retirement income they provide are over—if you’re going to live comfortably in retirement, you’re going to need a steady income. Some people get this from many investment types. But if you own real estate, rental income is a steady way to ensure that you’re getting monthly payments that help you handle the month-to-month expenses of retirement. It can be far better to rely on consistent tenants than it is on volatile markets, depending on the circumstances of the economy.

  1. There are plenty of opportunities for growth.

Real estate, like any investment, doesn’t sit still. The prices can go both up and go down—but so long as you’re building wealth through real estate, you have the opportunity to realize some impressive gains that could help you live retirement far more comfortably than you lived before retirement.

If you want to learn more about Real Estate IRAs, get in touch with us here at by calling 828-257-4949. We’ll be happy to talk about all of the options you have available to you, as well as the advantages of real estate investments through IRAs as you read here.

Rate this post