Using an IRA/401k for investing?

4 Replies

It's a new year, and I am interested in using my IRA and 401k funds to make some real estate investments. Can someone provide input on how to use these funds, tax compliance, vehicles to use, providers to assist in managing these funds, etc.

@Bob Lowry  

A self directed IRA or 401k can be a great means to diversify your retirement investing into real estate and related non-traditional assets.

The questions you ask are quite wide ranging, with answers that will be specific to your situation and investment goals. Random forum postings from general investors will probably not take you very far in improving your understanding of this topic as it pertains to you, and I would recommend you find one or more of the reputable self directed IRA advisory firms here on BP and give them a call.

Generally speaking, the IRA or 401k component of the plan stays the same with respect to contributions, distributions, etc. Self directing is just a means to invest differently - into assets not offered by the Wall Street firms. Of course, since this is tax sheltered retirement savings, the only goal is to deploy the capital into assets that provide the best mix of security and income potential. There can be no direct or indirect benefit between the use of plan funds and you or close family, family owned businesses, etc.

Best of luck as you embark on your education on this topic.  it can be pretty exciting when you find out how much control you can really have over your own retirement savings.

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I decided to take a tax hit, myself. But instead of taking the money out of my IRA or 401(k), I converted some of my pre-tax funds to Roth funds for use in my higher return RE investments ==> no taxes ever again on returns from those funds.