Switching jobs, want to invest retirement in real estate

[Chester Knapp]

I am switching jobs, and have the opportunity to take my employer matched retirement account (a Municipal Employees Benefit Trust, used in lieu of Social Security) to invest in real estate. I can rollover the funds into an IRA. Do I need to transfer the funds now into a self directed IRA custodian, or can I rollover to a custodian like Vanguard and then transfer to a self directed IRA later when I find the property I want to buy?

I am also looking for a financial advisor who can help navigate this and help advise on the best legal structure for a real-estate partnership using an IRA. I'm located in the Seattle area.

[Bernard Reisz]

@Chester Knapp Transfers and rollovers can be done at any time, provided they are direct. There are limits on the number of indirect transfers.

Additional steps just add to paperwork and some transactional fees. If you plan to transfer the funds as soon as you find a property, that gives a short investment horizon for your Vanguard investments, which limits your investment selection.

Another factor to consider is how soon you'll need the cash once a property is identified. If the self-directed account has not yet been set up, you'll have to allow for time to get the funds from Vanguard to the self-directed account and from the self-directed account to your deal.

Whether it's worthwhile to set-up the Vanguard account seems to hinge on how soon you anticipate identifying a property.