OfflineWhile the concept of investing in real estate and other assets 401k's has been around for more than 30 years, it hasn't received a great deal of attention. Why? Most custodians that offer 401(k)s (banks and brokerage firms) focus on mutual funds and CDs—because they have vested financial interests in having you select their own investments. Due to this fact, there's a common misconception that these are your only investment options for retirement plans.
A self-directed 401(k) is technically no different than any other 401(k) or IRA. It's unique because of the available investment options. A truly self directed IRA/401(k) custodian allows CD's, mutal funds, stocks, and bond investments PLUS real estate, notes, private placements, tax lien certificates and much more.
IRS Publications 560 and 590 clearly state the rules and regulations governing IRAs and qualified retirement plans such as 401(k)s. To ensure compliance, you should be familiar with specific rules for 401(k)s, and, in particular, self directed 401(k)s.
Most importantly, the IRS prohibits “self-dealing,” investments in which you or family members of lineal descent have prior ownership. It might be another worth while option for you to consider using to invest in real estate with your own retirement funds or someone else you know is looking to diversify their investment portfolio.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I bought my first investment property using a self directed 401K! I continue to make investments using it! It has much better returns than the stock market!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
to grow your retirement than with RE! Much safer than the stock market and much better return than a CD! Your self directed IRA can be a goldmine for you to begin your investment career! Just remember, you make your profit when you BUY the property, not when you sell it, and you will do well. (Of course you don't get paid until you sell it), but if you buy well below market, and do your due diligence, a GREAT way to build your retirement funds!)
These can invest in mortgages. Anybody know how to find these people to see if they will invest in mortgages on buy and hold deals
Gerry