Options for 401k investing.

[Oscar J Carrillo]

I am a police officer in California. I am a newbie in real estate investing and I recently changed employers but I want to put my retirement into an account that will allow me to invest in real estate or allow me to barrow from myself. I know basic information on Self directed IRA's. I am leaning towards putting my money into a Self Directed IRA but it seems a little bit risky. Anyone have any experience with SELF Directed IRA's or ROTH IRA's or maybe some other options? I have one rental property and rent out a room in my primary residence. I am looking to buy another rental in my area but I want to see how I can use my retirement money to my advantage. I am just looking for others opinions to make the best decision I can make. Thanks.

[Justin Windham]

@Oscar J Carrillo

One thing to keep in mind with self-directed retirement investing is that this activity grows your retirement account but does not generate income for you in the short term. @Buddy Holmes made some good points. If you are eligible for a Solo 401k however, some of those restrictions would not apply. For example, you can borrow from a Solo 401k plan. Also, if the Solo 401k borrows money via a non-recourse loan to purchase real estate, UDFI tax does not apply. If you have self-employment activity, these or other Solo 401k benefits could make the idea of self-directed investing a better proposition for you.