All Forum Posts by: Account Closed

Jesse Hargrove, thank you for that.  That is exactly the thought process I have.  While my pension is with a stable company and the risk of itngoing away is small, at the same time it isn't growing, itnisnt liquid, and there's nothing to leave tonthe whole family after I'm gone.  With real estate, the value doubles about every 20 years, there's ongoing income before and especially after Iran paid off, and quite a bit to leave the family.  

Thank you.  I just sent Quest a message.

I'm still debating.  The average annual return on real estate over the past 20 years is 3.4%.  While that doesn't seem like much, over a 20-30 year period the value of a home would double.  On top of the paid off doubled value, if you work it correctly, the profited gains from rent could be reinvested back into a retirement account.  Over a period of 30 years that alone could be a significant amount in a retirement account.  

Hmmm.  This seems doable but complicated.  I'm now curious which is cheaper:  Take the pension distribution and pay the penalty or go the self directed route and deal with all the red tape associated.

Interesting. I've done some in-depth analysis and believe I can grow at a better rate. In my analysis, I used a historical average of 3% growth rate on the real estate. I've targeted homes in strategic areas that have a high rental rates such as colleges and universities as well as military installations. While I understand the risks associated with the property lying vacant, damage, maintenance costs, etc., I'm assuming your comment on "the plan pays for all expenses" means, basically, if something breaks, the plan pays for it. If that is the case, my simplistic follow on question is "how"? Since this is a IRA plan (self directed), how are funds withdrawn to pay for, say, a roof leak repair? Is there simply a check-book tied to the SDIRA, etc?

I recently was offered a pension lump sum payout by a previous employer. As a 45 year old, I have a few years left until retirement. I have 13 vested years with this previous employer with a monthly payment estimated of just over $1100 per month after age 67. I realize that 1) that amount doesn't grow, and 2) it is a guaranteed monthly income for life. This is a very well-known and very stable company any household around the world would recognize. The risk of them "going under" is small. I believe I can get a better return in the next 20 years until retirement by investing correctly in real estate under a 15 year mortgage. My question is this: Is a self-directed IRA the right way to go to take the pension payout? If so, how does one fund things such as maintenance expenses, etc., with self directed IRA funds.

Id also like to hear opinions on whether or not this is even a good idea to take the pension buyout or leave it be.  Thank you for your time and opinions.