Do you have a long-term plan for your capital?
Whether you’re among the few, the proud, the informed … or if this is a brand new concept, in our latest show we talk about some recent changes to know about investing in real estate with your IRA.
While many real estate investors are aware of self-directed retirement accounts can be used to buy, finance, or option real estate …. MOST paper asset investors do not realize this.
It’s a HUGE opportunity for those looking to get in on bigger deals.
In our latest episode we sat down with our favorite self-directed IRA expert for his tips on wealth-building. Listen in to learn how YOU can untapped treasure chest.
Tune in to our latest edition of The Real Estate Guys™ radio show with:
- Your IRA-myth-bustin’ host, Robert Helms
- His gut-bustin’ co-host, Russell Gray
- NuView Founder and President, Glen Mather
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Introducing Glen Mather
We were pleased to welcome Glen Mather, NuView Founder and President, to our show again.
Glen left his corporate job to open NuView in 2003, wanting to help others take control of their IRA. He speaks nationally on the topic of self-directed IRAs and has been featured in print and on television.
Glen saw the billions … no, TRILLIONS of dollars tied up in “non-traditional” investments and the opportunities available for savvy investors.
Staggering $7.4 Trillion in IRA Accounts
If you’re looking for a creative way to find capital, there’s a whole treasure chest available in self-directed IRA accounts. This year the tally is up to $7.4 trillion.
First, let’s back up and talk about different types of IRA accounts.
The granddaddy is the traditional, the most popular for when employees rollover their money from an employer account. In a traditional IRA account, you put money in without paying tax, and Uncle Sam takes his tax piece of the pie when you withdraw money in retirement.
Some encourage the traditional IRA with the idea they will be in a lower tax-bracket in their older age – but wouldn’t you prefer to have a higher tax-bracket, due to all of the wise real estate investments you made?
For those planning on a HIGHER tax bracket in their mature years, consider the Roth option.
With a Roth IRA, you pay tax upfront.
“This is paying tax on the seed instead of the harvest,” said Glen. “When it gets large and you’re excited about your large balance, it can be painful to pay taxes on it.”
One caveat: Not everyone qualifies to have a Roth. You have to have earned income, not just passive cashflow. This could include things like 1099 or W2 work, and you need to earn at least $5,500.
Self-direction puts YOU in charge
For those with self-directed IRAs, YOU have the responsibility to vet out investments.
There are a few retirement account custodians who believe in giving choices to everyone. NuView is one of them.
Of course, there are some legal restrictions. Glen explained, for a self-directed IRA, there are really only three things you CANNOT invest in:
- Life insurance
- Collectibles (baseball cards, etc.)
- Stock of sub-Chapter S companies
After all, the idea behind retirement accounts is to have money put away that you’ll need an use in RETIREMENT, right?
“You can’t have a current benefit,” said Glen. “You wouldn’t use IRA money for a vacation home. You have to be a passive investor.”
This means, with a self-directed account and a willing custodian, you can invest in things like:
- Trust deeds
“People talk about diversification but true self-direction leads you to diversification in lots of ways,” said Glen. “Your strategies can change over time as you grow in knowledge of real estate.”
For example, you could be on the financing side, or you could invest in the first deed of trust.
Start where you are – plan for a bright future
Whether this is old news to you or opens the door to new possibilities – being aware is the first step.
Nobody cares about your money as much as YOU do. Want to find other ways to grow your retirement nest egg in “non-traditional” ways?
Don’t be afraid of starting where you are, even if you only have a few thousand dollars to invest.
“If you can’t think of ways to invest it, someone else will have that figured out,” said Glen. “People think they shouldn’t bother using their IRA for other self-directed investments unless they have a big amount.”
But will it grow a lot slower if someone else is making the decisions?
Take the reins on your retirement, and create a future you’ll thank yourself for later.
Some people spend more time planning a two-week vacation than they do the rest of their life – don’t let that be you!
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