If your like most of us, your probably focused on growing your retirement account with as great a return as you possibly can. This is especially true because of the current trend of businesses and corporations turning away from managing their employee’s retirement accounts.
Even if you currently have an adequate retirement account, diversifying or supplementing your current investment plan through IRA real estate investing can give a tremendous boost to your retirement investing.
There are a several keys that unlock the door to the new horizons that IRA real estate investing can provide.
First, you must have a custodian that is experienced and knowledgeable about IRA investing in real estate. This is because you must follow special IRS rules for IRA real estate investing. If these rules are violated you can lose the tax advantages that your IRA provides. Because of this most custodians shy away from overseeing IRA investing in real estate despite the stellar returns that IRA investing in real estate can bring to there clients.
The majority of custodians are actually experts in other areas and professions, many are moonlighting so to speak as IRA custodians. For instance their main job may be as stock brokers or bank employees.
Traditionally IRA’s and other retirement accounts have concentrated on the usual investment vehicles, stocks, bonds, mutual funds. The IRA investing in real estate concept maybe totally foreign to them. They are simply more comfortable with the traditional IRA investments.
Secondly, you need a self-directed IRA account, because most traditional IRA custodians don’t allow clients to invest in real estate. This may seem strange since the IRS IRA rules definitely allow IRA real estate investing as an option. But as stated above most custodians and brokerages are simply unskilled with real estate and the rules that govern there use in retirement accounts. Again this is why choosing the right custodian is so crucial to your investment success.
If you don’t currently have a self-directed IRA account, a good custodian can walk you through setting up one. They can also direct you in how to use a rollover IRA to move funds from other retirement accounts so they may be used to take advantage of IRA real estate investing. One such custodian that has provided I and my clients tremendous service and support is Equity Trust.
Third and probably the most crucial is experience with IRA real estate investing.
This is the steam that powers the whole engine, without it you run a high possibility of losing your had earned money instead of growing it for your retirement.
If you have experience in this area you may be able to navigate the process with no trouble. But if you are not skilled in this area you will need competent advise and consulting to choose the correct investments.
Luckily there are a small number of professional real estate investors with proven track records and experience with IRA investing in real estate [http://www.iloc-ira-investing-site.com].
The combination of a top notch custodian, experienced real estate advisors and the proper type of account for IRA investing in real estate can not only keep you afloat in the wake of the current stock market volatility but, if the right real estate is carefully selected it has the potential to turn your raft into a yacht. Cairnhill 16