Over the last two years economists and prognasticators have proclaimed our current state of affairs as ‘The Great Recession”.   According to the department of labor at the start of the recession in December of 2007 we had an unemployment rate of 5% and approximately 7.7 million Americans out of work.  In December of 2009 the unemployment rate was 10% and the number of unemployed Americans was 15.3 million   Flash back to October of 2007.  Real Estate was booming as owners borrowed from their homes with HELOCs and the DOW closed at its all time high at over 14,000 points.  Then the trouble started with the failure of Bear Stearn’s and Lehman Brothers bankruptcy.  Between the stock market peak in October and it’s low in March of 2009 the stock market dropped over 50%.  Over 3 trillion dollars in net worth was lost my Americans.

Americans now more than ever are taking charge of their own future and managing their own retirement accounts.  With the challenging times we face investing in solid inflation fighting real estate investments are a good alternative to traditional investing.  With the value of future retirement accounts greatly diminished it is time to grow the ‘nest egg’ by utilizing all the potential tax strategies and tactics available to us.

As an investor it is important to realize that you can make decisions in your IRA or 401 K plan yourself.  While the stock market is confusing for many the idea of purchasing a rental property in your retirement account makes great sense.  Cash flow in addition to  property appreciation can make for a very good avenue of diversification to the tumultuous stock market.   A purchase and sell in your IRA or 401 k is tax deferred allowing you to increase the value of your portfolio without triggering tax consequences.  You can also get a real estate investment loan in your IRA or 401 k giving you the ability to leverage more real estate. 

As always before making a move to manage your own IRA you should consult your professional accountant, tax attorney, and realtor.  If you are interested in more information on purchasing real estate in your retirement account please contact RE/MAX Elite Properties at (208) 377-2999 or visit us at www.homeinidaho.com

Tags: Boise Idaho real estate, Boise real estate, Boise real estate agent, Boise real estate investment, Buying a Home in Boise ID

Posted on Monday, March 29th, 2010 at 6:32 pm and is filed under Boise Idaho real estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.