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Many people are not aware that they can roll their 401k over in to a self investing IRA and then invest it in real estate. A self-directed IRA gives you the control to decide what and where and how much you want to invest. Now, why would you want to be investing 401k money in real estate? Let us say you are contributing up to four percent of your paycheck into your company’s 401k plan. You are investing in whatever your company’s plan invests in; therefore, you have no control. Most of this money is not allowed to be self-directed because of the limitations the company places on the amount of contributions you can personally self-direct. A self investing IRA is better than a 401k because the 401k plan may have a limit on how much of it can be used to purchase an investment. A self-directing IRA does not have a limit on how much can be used to purchase an investment. Many smart investors are investing 401k money in real estate by rolling it over into a self investing IRA. This is something more people should be doing but many are still afraid of making a change. In addition, people do not want the responsibility of looking after their own investments. However, there are still a large number of people who are looking for control over where their money is invested. Having complete control over your self investing IRA is an exciting feeling. A traditional IRA has limitations, however a self directed IRA allows you to invest in real estate. There is no limit either with a self directed IRA; you can use the entire amount to invest in real estate. There are a couple of important points to note at this time. You may have been losing money in your company’s plan, switching to a self investing IRA means you have complete control to invest in real estate, but now the tricky part is, with whom do you invest it and how do you invest it? Investing 401k money in real estate can open doors to increased wealth that you never knew existed. Once you have made the decision to go ahead with this change in your investment plan, you need to find a company that offers a turnkey investment opportunity and one that takes care of all the required paperwork. A good custodian will make this decision that much easier for you.
Darren is an active participant of a national network of professional writers who advocate socially conscious real estate investing through the use of retirement vehicles such as IRAs, 401Ks and other retirement assets. For more information, or to get involved, please visit www.theselfdirectedira.com now. By D. Mitchell
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