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 Shelli Cracchiolo at 209-941-5177, or Lori Bilyeu at 208-713-1123 or visit our website at www.theeliteteam.net .