subject: Using Real Estate To Diversify And Optimize Your Retirement. [print this page] You can take advantage of economic downturns if you can access your 401k. Roll some of the money over into a Self Directed IRA. This can give you more flexibility and allows for more investment opportunities and can help you save for your future retirement one day.
If you have the money in your 401k to purchase some real estate, a Self Directed IRA LLC will allow you buy the property using the funds from your account. (Self Directed IRA LLC are more expensive in California and Illinois but there are other options for those states.)
There is a $2000 fee to set up the account, plus a state filing fee. That cost also includes consulting after the plan is up and running. You can get as much or as little help as you want.
If you purchase the property as a rental all rent is paid directly to the LLC and continues to grow your investment. Taxes, maintenance costs, etc. are paid by the LLC. So your personal income isn't involved.
It's important to remain diversified and do this with only part of your retirement. Opportunities exist for purchasing real estate at low prices, now is the time. Rental income plus the appreciation will have a huge impact on your retirement.
To increase the potential for appreciation look for the worst house in the best neighborhood you can find. To increase potential for rent look for the best house in the worst neighborhood. But above all else, find the best deal.
Be careful to find a good company to work with. With any investment, find people you trust. Be sure of what your doing and don't rush into anything.
When it's time to retire, your Self Directed IRA LLC can stay in place. The LLC can disperse funds to you as you need them. If you prefer, you can dissolve the account and take ownership of the LLC yourself. Being successful in taking ownership over your financial life and career is important.
