Self Investing IRA--Food For Thought

For those of you that have a 401K, I wonder if you have thought of rolling it over and converting it to a self investing IRA to invest into real estate? It is just the same as investing 401K money in real estate except an IRA or self directing IRA would give you the flexibility of controlling where, what amount and what you invest your money into. The reason I am suggesting this is explained in this article.

I was speaking to my neighbor the other day and he told me that he had been contributing around 3% of his pay into his company 401K plan. The problem with this was that he was only able to self direct a small percentage of his contributions leaving him with very little control over his own money. The reason for this, was that the company restricted the amount that he could self direct. He was also informed that if he left his job or the company changed their rules he could even lose more authority over what he directed the 401K to invest in.

Following this, the 401K went on to lose more than 10% in the space of one year. He then realized that he needed to take more control over his money so that it would be working for him and adding to his retirement fund.

With full steam ahead, he started researching how he might be able to roll these funds from the 401k into a self investing IRA. He wanted the IRA to give him full control over his funds with no limitations.

His research lead him to discover that traditional IRAs also had restrictions but a self directed IRA would allow him more options including real estate investment. This appealed to him as he realized the potential of investing in real estate.

The main difference between self investing IRA money into real estate and investing 401k money in real estate is that the 401K Plan can limit the amount that he could use to buy an investment. With self investing IRA funds there are no restrictions on the amount he could spend. He could use the lot, if he wanted to.

Of course, he then had the responsibility of directing his new IRA along the right path. This is a huge responsibility but with the right advice and guidance he could create an incredible opportunity.

Similar to investing 401k money in real estate he now had the option to look for companies that offered turn-key investments and good management processes. It is important that the paperwork be well managed so that all legalities are covered.

This is an ideal situation offering great opportunities in today`s economic situation. Don`t delay, just click on the link for a whole lot more information.