Don’t be surprised that “NO” is the most common answer.
This is because most Financial Advisors are in the business of recommending stocks, bonds, mutual funds, annuities and treasuries. They are not in the business to recommend products where they will not earn a commission or fee.
I have been in involved with clients in advising them on individual retirement plans since 1969 when the HR-10 Keogh Plan was the premier option for retirement savings for the self-employed. Since then, plans such as the Individual Retirement Account and Solo 401(k) have evolved to make tax deferred retire-ment savings account both easier to establish and more cost efficient.
One of the most important developments in Individual Retirement Accounts was the Self Directed IRA. Based on a 1996 court case, the IRS recognized the Self-Directed or “Check-Book” IRA in 2001 and allowed for the investment in real estate, gold and silver, tax liens, private placements, foreclosures, small businesses, etc.
Since then, there has been a lot of misinformation and myths appearing in the media to support different positions on this Retirement Plan Alternative.
While the SD IRA allows more options for investment than ever, there are certain restrictions to be aware of when investing retirement funds. These involve such items as the types of properties that can be purchased, use of those properties, holding periods, and access to loans. This is the reason that you should consult with a qualified advisor.
Today’s market offers unique opportunities on both a cash flow and an appreciation strategy. In today’s market, investors are taking advantage of the fact that cash flow opportunities have rarely been higher than it is today and is bolstered by a recovering market. From the cash flow standpoint, rental demand has rarely been higher than it is today and from an appreciation basis, home prices in the local area have increased by an average of 4.54%.
SHOULD YOU INVEST IN SINGLE FAMILY HOMES? Did You know that there is currently a Building Boom with Homes being built exclusively as Rentals?
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