Max out SEP IRA or Buy more real estate

[Adam Craig]

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.

[Dmitriy Fomichenko]

@Adam Craig

if you use self directed 401k you might be able to do both, shelter more of your income from taxes and then use your retirement funds to buy real estate. In this case all of the real estate gains inside of your 401k will be sheltered from taxes and the growth will be compounded.