Real Estate in Your IRA: Can You Afford to Retire Without It?

Where would you be today if your IRA/401K funds had grown as much as your home has appreciated in the last 5, 10, 20 years?

The Social Security Administration provides 89% of all retirement income. 9 out of 10 Americans depend on an annual income of $13,500.00/year. or $1250/mo. Imagine trying to survive on those meager funds!

Do you know how much income you will need to live on when you retire that is above and beyond the amount Social Security will provide? Let’s take a look at some hard facts here…

For every $5,000.00 of net income, you will need to have $2,000,000 in cash saved in a guaranteed investment, such as US Treasury bonds that earn 4% per year. How will you get there?

Also, with the volatility of the stock market, you can’t afford to take a big loss. The government places restrictions on the amount of contribution you can return to your retirement plan.

Based on the Rule of 72 with a 10% return, your money will double every 7.2 years

Did you realize that you have alternatives to the stock market and underperforming assets? IRS code section 408 allows people to put real property into their retirement plan. However, not all CPAs, attorneys, and financial planners are aware of this.

Imagine using the most stable and virtually risk-free vehicle to build your portfolio. Who has time to manage stocks, mutual funds, and all the other wealth-building tools? Wouldn’t you rather build it the easy way, using the power of appreciation and time to generate huge profits with little to no tax?

When placing real estate in your retirement mix, you must be selective. Why risk bad tenants, mortgage debt, another housing bubble, or a turnaround in the housing market? You need to buy real estate on a major growth path. It must be usable, free of defects or clouds in the title. You must also be able to use the power of co-owners to gain leverage.

Ask yourself what has been the best purchase you’ve ever made. Was it your house? where you bought it? When did you buy it? What is it worth today? Would you like to see a better real estate purchase that yields better returns over time than your home? Try land banking.

Not just any old land has to have very strict criteria. Growth is the prime mover, what about water, economy, strong tax base, planned business, community, roads, sewer? Are you starting to see the picture now? Would you like to retire wealthy and create the lifestyle you’ve always dreamed of?