Using retirement funds for REI seems terrifying - HELP!

[Patricia Miller]

I'm looking for moral support as I consider moving funds from 403B accounts (heavily invested in equities) to Solo and self-direct accounts (mine and my husbands) for the purpose of acquiring buy and hold properties. I have secured the services of a reputable CPA with expertise in REI - so I know I am in good hands. However, on the psychological side, the thought of taking that money and using it for something that is new to me (although I am determined and committed) seems terrifying -- maybe just as terrifying as leaving it in the stock/bond market given that retirement is just around the corner.

Let's assume, for the sake of discussion, I can be successful at finding a solid deal or two... any words of advice on using money from Solo/self-directed accounts? Cautions? Any personal stories - good or bad?

I realize this is a very general question, lacking substance. But, any pep-talk or motivational words of wisdom would be appreciated!

[Justin Windham]

@Patricia Miller

From the self-directed standpoint, a good understanding of the prohibited transaction rules is key. Having a provider who can help you develop that understanding can be very valuable. Most people focus on making good investments (and that is important as well) but when it comes to real estate in a self-directed IRA or 401k, you want to choose investments that will provide good returns among assets and transactions that are not prohibited. Once you know the rules and how to follow them, it really can be exciting to see all the possibilities you have for taking your retirement funds from a very limited account to one that allows you to acquire the assets this whole community was created for. Being able to combine high real estate returns with the tax advantages of a retirement can be a fantastic boost to your nest egg. I'm glad you found a good CPA to help.