Self-Directed Real Estate IRA

What to Look for in the Ideal Retirement City with a Real Estate IRA

When you retire, it’s not just about the money you have—it’s about the money you have to spend. Using a Self-Directed Real Estate IRA (i.e., a Self-Directed IRA which you use for investing in real estate) is a great way to maximize how much money you have. But what about the other variable in this equation? That’s when it’s time to think about the real estate you might occupy. In other words, you will have to consider where to retire to maximize your retirement nest egg.

In some cases, your home will do just fine. But it’s worth shopping around a bit and understanding what to look for in an ideal retirement city if you are using a Self-Directed Real Estate IRA, especially if you want to continue to use that IRA to invest before retirement.

Demographic Elements that Make a City Great for Retirement with a Self-Directed Real Estate IRA

First, let’s take a birds-eye view of a city you might select for retirement. This usually refers to demographics and statistics, such as:

  • Cost of living. Consulting the cost of living index for certain cities will not give you a full picture of the city, but it will give you an idea of how much you might expect to pay out during retirement. This is especially valuable for those who want to stretch every last dollar of their Self-Directed Real Estate IRA and ensure that they live comfortably in retirement.
  • Access to health care. Let’s face it, the older you are, the higher your risk of needing health care. Access to health care is vital for any retirement city you consider, which is why you should consider it as you weigh your options.
  • Property values. If your priority is to live as comfortably as you can with a limited budget, then stretching the value of your dollar means looking at the property values. Can you buy more personal real estate to live in with the money you have set aside? There’s a reason that some people do not retire in New York City or Los Angeles but prefer to move to cities with lower property values.

What to Consider When Scouting Cities for a Self-Directed Real Estate IRA

Let’s say that you are using your Self-Directed IRA for real estate investment. What sorts of variables should you look for as you look for investments?

  • Location, location, location. We repeat ourselves because it’s that important—and you will have to be sure that the location of your real estate is also within a reasonable distance to where you want to live. Otherwise, real estate can be difficult to research, even if you hire a property manager, which is what you will be doing with real estate investments within a Self-Directed IRA.
  • Growth potential. When you look for cities for retirement, you can look at what they are now, trusting that they will not change too much in the next ten or twenty years. But you need to consider the growth potential of a specific area if you are investing in real estate, which is why it does not hurt to understand the overarching trends of real estate where you are investing.

Whether you are looking at cities for your personal retirement or simply scouting places for your Self-Directed Real Estate IRA, it helps to know as much as you can before you make a move. This will help you avoid mistakes and build a real estate nest egg that helps you with cash flow in retirement.

Interested in learning more about Self-Directed IRAs?  Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation.  Download our free guides or visit us online at