The rise interest rates resulting from the recent financial crisis has caused a lot banks to foreclosure real estate properties. Banks, anxious to liquidate these foreclosed assets, has caused a goldmine to be found in real estate. Those who were lucky enough to have the cash on hand bought property almost at bargain prices and can now sell them at almost double what they originally spent.
There is no way to go but up as far as real estate prices are concerned. This has been determined a long time ago. But it is good to keep in mind that real estate is a long term investment and that such price appreciation does not happen overnight. If what you need is retirement fund investments, you cannot go more long term than real estate. IRA rollover can be the solution because it offers a wider choice of investments and also the tax free nature of withdrawals.
To illustrate: if you now have a 401K, you are availing of tax benefits by way of tax exemptions on your contributions. The tax benefits you currently enjoy in a 401K include being taxed for distributions from your retirement fund only as regular income even if the fund includes all income generated by your investments. In contrast, qualified distributions from your IRA account when you retire is tax free. In addition, an IRA account allows you to invest in non-traditional assets.
If you care to make investments in real estate IRA rollover can provide you with the key to such endeavour. The rollover can be accomplished in 2 ways, to either make direct transfers of all your 401K assets into the IRA account or divest your account of stocks and the cash directly transferred into your IRA account. But if you intend to buy real estate, IRA rollover of the latter option would be the obvious choice. Just remember to make the rollover directly to another custodian because check transfers are subject to a 20% withholding penalty. Once this has been accomplished you can proceed with investing in real estate IRA, rollover funds readily available.
When investing in real estate IRA, rollover funds can even be more at your disposal if you make the transfer to a checkbook IRA. A checkbook IRA allows you to have complete control over your account, direct where investments are made, the assets to buy and so forth. However, the responsibility of ensuring that you are not in violation of any IRS rules regarding investments lies completely on your shoulders. Further, managing a retirement account’s assets coupled withthe activity of scouting for profitable investment options requires a lot of your time and patience. Therefore, a checkbook IRA account may not be suitable for everyone.
However, this fact cannot diminish the reality that real estate as an investment asset for retirement accounts provides income opportunities that make your secure retirement an eventuality. Within an IRA account, your assets grow tax free from real estate investments. Real estate IRA investing allows the generation of income from either from rentals or capital gains when you buy, improve and then sell the property. And when you make qualified withdrawals when you retire all of these come out tax free. This is surely a way that a comfortable and worry-free retirement can be ensured.
For more information about Real Estate IRA Rollover and other important business topics and for legal consultation, please visit our Real Estate IRA Rollover website at http://assetexchangestrategies.com or call us at 866.683.5228
