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Updated almost 11 years ago,

User Stats

603
Posts
130
Votes
Adam Craig
  • Investor
  • Cleveland, OH
130
Votes |
603
Posts

Max out SEP IRA or Buy more real estate

Adam Craig
  • Investor
  • Cleveland, OH
Posted

Last year I purchased my first 3 rental properties. This year I want to purchase 3 more. I am funding them with the cash from my consumer electronics internet business. I put about 19K in my SEP in 2013 and my CPA says I should add $18K more to max it and hold off on buying more real estate.

My first thought was that I never intended for my IRA to be my retirement vehicle - I want a large portfolio of cash flowing properties to be what I retire on. Not to mention 19K is a pretty significant investment when I am 30 + years from touching it. He keeps talking about the instant tax savings and compound growth but I dont think he understands all the financial long term benefits of real estate.

Am I wrong here? Should I listen to my CPA and max out my SEP or should I stick with my plan of 70% real estate 30% Stock market? It would mean I would buy 2 houses instead of 3 this year.

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