Self Directed IRA and 401K

[Oscar Freiman]

Please allow me to show my ignorance, and my desire to learn. Currently, I have a respectable amount of savings in a managed IRA (not self managed), and I am putting 15% of my salary into a 401K every month. It is my understanding that, keeping this, depending on the stock market, bonds, etc., is not a good practice or the best practice to build wealth. So, in order to get into RE investment and grow what I have now, to be able to retire between the next 5-10 years, I'll appreciate your guidance.

Here are my questions/concerns, considering I am 61:

• If I take out X-amount from my IRA, I'll get taxed and lose a big chunk of the money. What is the best practice or recommendation to avoid losing a lot of money?
• Are there better options than a 401K, but still be able to save 15% every month to build savings for investments in RE?

Thank you for your advice.

[Dmitriy Fomichenko]

@Oscar Freiman

If you decide to go self-directed route for your IRA, consider investing in real estate notes. Generally it is better to own real estate in your name personally because of the tax benefits and passively invest in notes with your IRA because all interest income will be sheltered from taxes.