Are you tired of the volatility of the stock and bond markets? Concerned about inflation and the low interest paid on a bank or credit union IRA? Planning for retirement is critical to ensure you are taken care of when you stop working, but knowing what to invest in, how and when to invest, can seem confusing and difficult. One option that many investors consider today is a Real Estate IRA.
When executed correctly, an IRA real estate investment can help you earn more over time than traditional stocks, bonds, and mutual funds, and provide a way of protecting your retirement savings from the ups and downs of the stock market. It’s also a great way to diversify your portfolio. A Real Estate IRA can be self-managed or professionally managed by a real estate asset management firm. 1031 Exchange Place maintains a database of trust companies that offer self-directed IRAs, which enable you to invest in IRA real estate.
Most retirement advisors recommend that you diversify your portfolio, and avoid having all your investment funds in a single asset class. If you currently hold your entire retirement plan in bank CDs or deposits, stocks, bonds, or mutual funds, consider buying IRA real estate as a way to diversify and potentially improve returns. Your Real Estate IRA may include any type of real estate, including office, retail, rental units, land, net-lease single tenant properties, mortgages and trust deeds. Properties should be acquired debt-free and it is prohibited to acquire IRA real estate for personal or family use.
Many Real Estate IRAs are invested in net-lease retail properties, leased to national tenants such as AutoZone, Family Dollar Stores, and Walgreens. These corporate guaranteed properties can provide secure long-term income, without the market volatility associated with other investments. Most IRA account owners have insufficient capital in their IRA to own net-lease properties. 1031 Exchange Place can supply you with a list of net-lease properties where you can acquire a part ownership of a net-lease property and receive your prorated share of the rent and appreciation (See tenants-in-common).
Talk to 1031 Exchange Place today to find more about adding IRA real estate to your retirement portfolio.