Hi Brandon and all on this debate,
I cashed in all my IRA money a few years back and bit the bulleti and never looked back. We now have accumulated over $4,000,000.00 in apartments and single family residences. The big problem you talk about is the taxes at 20%. This will occur if you take this money at 30, 40, 50, 60, 65, or 70 years old right? Could taxes be higher in 10, 20, or 30 years? Who knows what the tax structure will be then. That argument is thrown out right there. Now we are left with the BIG TABOO 10% penalty. I now have $4,000,000 in total worth due to taking a measly $400,000 and cashing in my IRA. That money is in my control now!! No speculative stocks, mutual funds, risky ponzy schemes that even the financial planners that manage your money are snookered to invest your money due to the high returns tauted. Last, what an illogical argument to put real estate in an IRA or 401. Don't even get me started. I Now have over $100,000.00 in tax deferred cash flow coming in every year and I know where every quarter, dime, knickle, and penny goes. I feel so aware and in control, you can't even imagine the feeling, can you? My investments are all based on tax deferred cash flow and I never sell without a 1031 exchange. I will just defer, defer, defer, and die. Then, my child will inherit at a stepped up basis and deferral will start all over again and he can defer, defer, defer, and die and give it to his kids some day. I am in the process of 1031 exchanging all my pricey San Diego real estate after a short 5 years of investing and finding higher cash flowing Apartment complexes in Northeast Ohio presently. You gotta love this life!!! Don't be fooled by such illogical arguments. I don't want to wait 20-25 years at some unfulfilled promise and have other people control my money. There was a 10 year period recently where the stock market stayed virtually the same. The financial planner say to diversify. I call it deworsify. That means put one dollar and place in one pocket (small cap), another in other pocket (mid cap), left back pocket (large cap), and right back pocket International, and then bonds, cd's safe supposedly in shirt pocket. Then If two go up in value then two may go down in value and they say that adds safety. I say, logically if you take 2 out of one pocket and place it in the other pocket, then you are still at zero. That's what happened to my IRA or 401k for 10 years. What a joke!! I will put all my eggs in one basket from now on and then guard it with my life. I have done all of this, while keeping a full time teaching gig making currently $70,000.00 taxable. Of course, after 4 short years, I am earning over $100,000.00 tax deferred, while daily growing my total value of all real estate owned and increasing the value of my Apartment complexes by using the best product, best price, and best service business model. I am finding ways to increase NOI daily, ultimately increasing the value of my apartments, according to the banks. Summarily, I can 1031 exchange or refi if I prefer and take all money out, that I invested, TAX FREE. My refi loan would not be taxable. Another option is to 1031 exchange into a much larger complex that cash flow at a much higher rate than I traded it in for. Last, I can do a value/reposition deal and get the best of both worlds. Where else can you take a measly $400,000.00 and in after 4 years travel where I have traveled and in the next 5 to 8 years have under control nearly 50 million of real estate cash flowing, tax deferred over $500,000.00 per year? That is my new Grant Cardone like 10x Rule goals!!! What a country!! When I learned that my ladder was leaning against the wrong building (financially speaking) four years ago, I put the pedal to the metal and after my son graduates college in about 4 or 5 years, we will be financially free. Now that I think about it, we are making about $100 tax deferred per year presently (that is like $130,000 taxable) and $90,000 taxable W2 earnings with my wife's job as an instructional assistant for special Ed, we are financially free!! Tell me any other vehicle that could do this, and is perfectly legal, besides winning the lottery. Challenge you to do so!!
If you change the way you look at things, the things you look at change right before your eyes!!
Is your ladder leaning against the wrong financial freedom business model building? I know mine was. Feel free to reach out to me and discuss how you can do it too. I sure do love this stuff. Below is my go to cell number. Do you need a solid mentor that doesn’t want anything? I have always been a teacher and would love to see you succeed. I believe in abundance for everyone, not a scarcity, mentality. Everything I have accomplished in Real Estate and will accomplish in real estate is available. Seek and you shall find!!
Swanny
