Real Estate Definitely An Allowable Option for IRAs

Real Estate Definitely An Allowable Option for IRAs
by Joshua Geary


The disciples of the Dow Jones consistently advocate the stability of the stock market and love to demonstrate its solidity and profitability using 20, 30 and 50-year periods. No one's refuting that; occasionally, however, it does CRASH - and when it did in the 30s, and again in the post-millennium period, the crash had a devastating and permanent outcome. Moneyed investors who had their fortunes ensconced in stocks suddenly became penniless. Those who had stock holdings especially on margin were looking forward to retiring with their loot, but because of the market's lingering illness from 2000 to 2005; they've had to postpone retirement.

Real estate investments have outperformed stock market returns in the last 5-6 years. Name us one major accounting scandal in real estate. One would be hard-pressed to find a major or significant one. But name some company scandals that reduced a once prestigious stock to a junk stock. Don't the sagas of Enron, World Com, Nortel and a host of others leave a cloud of doubt over today's stock market, albeit its so-called durability over decades?

Other benefits: Real estate provides steady income. For a growing number of baby boomers preparing for retirement, investing to receive a regular income stream becomes more imperative. Real estate is a tangible asset. It is not a mere certificate with paper value. Real estate offers downside protection. Given its nature, it can maintain at least some minimal value versus stocks that can be entirely wiped out.

Self Directed IRAs Built for Real Estate:

Sometimes we need to repeat ourselves to remind investors with self directed IRAs that they can invest in real estate. It is surprising how many thousands - perhaps millions - of people are unaware that the IRS DOES allow them to invest in real estate here and overseas. Because they get so used to seeing their 401(k)s invested in traditional investments like certificates of deposits, treasury bills, mutual funds, stocks and bonds, IRA holders go through their working life without thinking that real estate has always been, and remains, a viable option for IRA dollars. Fear of the IRS is perhaps one reason for not wanting to tread on unfamiliar territory. The absence of an astute financial advisor is a second reason why investors like you are in the dark. Let's face it, the only time people engage in any form of real estate activity is when they're buying a house. Another reason is there are those who think that real estate investing is the monopoly of the independently wealthy.

So we'll say it one more time: you can use your self-directed IRA to invest in real estate. A self-directed IRA is no legally different from any other IRA. The only difference is that you can control your financial future with more latitude and greater flexibility - you decide how much latitude you want. "Self-directed" simply means that you can select - either on your own or with the advice of your broker or investment advisor - the investments you'd like to include in your IRA.



About the Author
With over 9 years of Internet marketing experience and the owner of 3 online businesses, Joshua Geary is among the most read authors on the Net for the subject self directed IRA. His article "IRA Options for Real Estate Investors" has been read by 4500 online readers.