Most people think about investing in real estate in their personal name or holding it inside an investment company (such as an LLC). But many people are discovering that there are other options, including self directed 401k real estate investing.
Certainly, holding real estate in your self-directed 401k can be a potent strategy. This method enables you to leverage your retirement funds by owning an income-generating asset. The generated income can grow tax-deferred or, in some cases, even tax-free until your retirement. This approach presents a valuable opportunity to strengthen your financial portfolio while operating within the confines of your retirement savings.
If you want to grow your retirement account and don’t want to put that money into the volatile and speculative stock market then this might be a strategy you’ll want to consider.
Self directed 401k real estate investing in Fort Myers – is it possible?
Yes you can! Most people are only aware that they can invest in stocks or funds in their 401k or IRA but you can also invest in real estate. (Some IRA custodians don’t want to hold real estate for you, which is why you should find a self directed IRA custodian who will).
You simply purchase the property in the name of your 401k (not your personal name) and all income goes into your 401k. You can even pay for any management fees inside your IRA as well.
Should I invest in real estate in Fort Myers Florida with my self-directed 401k?
The decision on investment choices ultimately rests with you. However, a growing number of investors are acknowledging the benefits of incorporating a cash-flowing asset into their 401k. The cash flow from such an asset functions as an extra monthly contribution to your retirement account, thereby augmenting the potential for sustained long-term financial growth.
Imagine the power of a consistently cash flowing asset that adds to your retirement account month after month after month with little or no work on your part. Wouldn’t that suddenly transform your retirement from something you’re worrying about to something you’re looking forward to?
You might even find, like many investors do, that putting a few cash flowing properties into your 401k could allow you to retire even sooner than you realized! What would life be like if you didn’t have to wait until aged 65, 70, or 75 to retire but could retire right now?
(And don’t forget about the amazing tax benefits: Depending on your 401k plan, that income could grow tax deferred or even tax free!)
Okay, how do I move forward and start investing in my 401k in real estate?
To invest in real estate within your retirement account, you’ll need to transfer it to a self-directed custodian that permits real estate holdings (as not all custodians do). Fortunately, this process can typically be completed swiftly, and most custodians are willing to assist you in making the transfer with minimal paperwork.
If you want some help, ideas, or even an introduction to a self-directed 401k custodian, we can help. Give us a call at (239)360-3176 or fill out our form and we’d love to help you make this smart move to self directed 401k real estate investing in Fort Myers.