Self Directed IRA Funds - Are people still using these?

Question

I was just curious how often people are using these for real estate investments? I know the stock market has been rallying so are people pulling the money out or leaving it in for the stock gains?

Dean Harris · Answer

I have a client that uses his all be fine to buy rental properties!

I'm happy to answer any questions

Chris Martin · Answer

See also this BP topic. I spent time to get the real facts from public records. I think, too, this data is similar across NC and probably across the county.

Dmitriy Fomichenko · Answer

@Steve Snyder

most of my clients invest their retirement funds in real estate. Now, when I say real estate that is not limited to rental properties and includes trust deeds, multi-family and commercial properties, tax liens, syndication, private lending, development, etc. But you are not limited to that either, with self-directed IRA or 401k you can invest into virtually anything: private businesses, precious metals, bitcoins, pier-to-pier lending, private placements, foreign real estate and businesses, etc. etc. etc.

Margaret B. · Answer

@Steve Snyder  Am a new investor; pulled some un-invested cash from stockbroker, started SDIRA with Advanta,

George Blower · Answer

@Steve Snyder

Many also invest in real estate using an IRA LLC. Another popular retirement vehicle for investing in real estate is the solo 401k plan. I have noticed that many will also invest in equities not just real estate.

Dean Harris · Answer

Steve...The clients that I have dont have any restrictions. They just buy it in the IRA name and it is funded at closing. Each IRA is different. Consult with yours and see what their program is.

Christie Gahan · Answer

Wesley:

I look at IRAs by when you pay your taxes on investment.  ( Be Wary, this is simplified. And, you know the IRS doesn't do simple!)

On a traditional IRA you can get a deduction on your income tax and the funds grow tax free until retirement.  You will pay taxes when you pull the money out to retire.  Some folks think this is a good deal because they think there taxes will be lower.

On a Roth IRA, there is no deduction upfront but you can take it out later tax free.  It also grows tax free.

All IRAs are accounts for investing.  Just like a 401k at work.  You can put your money in stock funds, individual stocks, bonds etc

Self Directed means that you are picking your own investments ( not just putting them in a fund).  You can buy a business down the street.  You can buy real estate etc etc.   There are a lot of rules around Self Directed Roth and investments.  You can't rent a property to an immediate family member, etc.  But, 20, 30 or 40 years of tax free growth is worth it to jump thru the hoops.

I hope this helps a little.  ~ C

Douglas Skipworth · Answer

Hi, @Steve Snyder.

We have dozens of clients who are still actively using their SDIRA's to buy real estate.  It seems to be a great tool for certain individuals.

Steve S. · Answer

@Dean Harris how is it regulated? Like who oversees how they can spend their money etc... Anybody?

Self Directed IRA Funds - Are people still using these?

Most Popular Reply