Did you know that you could roll over, or convert your 401K into a self-directed IRA (Individual Retirement Arrangement / Account) and then invest it into real estate?
Do you realize that you could do this just like self investing 401K money in real estate? But a self investing IRA or self-directed IRA would permit you to decide how much of your money will be invested and where.
Control of your dollars and investment choices provides you with the opportunity to maximize your earnings potential.
Why would you even consider doing this?
Let me share a story with you.
Mary was contributing between two and four per cent of her earned income into her corporation’s 401k plan. What she began to understand was that most of her investment dollars were not allowed to be self-directed such as with a self-investing IRA, or self-directed IRA. This was because her company put limitations on the amount of contributions she could personally self-direct into the plan.
In effect, Mary had no control over her IRA money investment choices and realized that her earnings potential was therefore limited.
Further, she discovered that if she quit her job, or her company changed its plan structure, her control over what she could self-direct the 401K to invest in might be further restricted.
Mary’s 401K lost over ten per cent in one year. She had had enough and decided it was time to look into other finance options that allowed her to make her own investment choices.
Mary researched how to roll over her 401K into a self-investing IRA. She was determined to obtain complete control over what she invested in without the hindrance restrictions her corporation’s plan offered.
Research revealed that a traditional IRA was also packaged with limitations. A self-directed IRA, however, allowed Mary an opportunity to achieve her dream which was to invest in such things as real estate.
There is a very important difference between self-investing IRA money into real estate, versus investing 401K only into real estate.
The major reason a self-directed IRA beats out a traditional 401k, is that the 401K plan contains a cap or limit on how many of your hard earned dollars can be used to purchase an investment.
With self investing IRA funds, there is no limit. You could invest and earn profit on the entire amount if you wish.
Flexible investment choices are accompanied by additional responsibilities. The ‘lack of control’ will shift to ‘full control’ over your investment choices.
You will now have the responsibility to direct her IRA towards the right real estate investment. This creates a huge opportunity, but how and with whom?
The company that offers turn-key investments as well as a good custodianship services to manage all of the necessary paperwork required with a self-investing IRA is the best answer.
Our current economy provides incredible advantages. This choice will open the doors for the wise investor.
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