Updated about 3 years ago on . Most recent reply
Self Directed IRA Hype?
It seems that the idea of a self directed IRA is a buzz word in the BP community. If you use a self directed IRA, would you be willing to share what advantages made you choose that investment vehicle? I understand the idea of alternative investments outside the stock market and agree that there is some value there. I've never seen the value of owning property inside of an IRA because the IRA cannot take depreciation against the property. Is there something I'm missing? I've done financial planning for almost 7 years but I'm not arrogant enough to think I know everything so your feedback is much appreciated.
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#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
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#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
Yes, there is certainly a value. I will use my own example. I purchased SFR in Phoenix using my self-directed Roth funds in 2013. Paid $110K + $10 rehab. Was rented for $895 at the time.
Today it is valued at $420K and I just signed a new lease for $2,000. Do you see the value now?
I don't care about the depreciation, it's tax free! I probably did 10X better than the stock market. And there are many other ways to invest into alternative assets.