Real Estate vs Roth IRA: What's Better for Retirement?

[Kaden Zimmerman]

A little background - I am 20 years old, and recently purchased a fourplex that cashflows $930 / month. I am also invested in a roofing business with my brother, and a dumpster rental side hustle. I currently do not have any money in the market.

I’ve been weighing my options for investing for retirement and wanted to hear from others who are solely relying on physical real estate, or those who also have investments in the stock market.

I guess my question is this: Based on this information, is it worth me maxing out a roth IRA or should I just focus on my business and real estate?

Looking forward to learning from you guys.

[Kaaren Hall]

First off, congrats—you’re 20, already cash-flowing on a fourplex, and building businesses with your family. That’s a huge head start, and you’re clearly thinking long-term.

As someone who's been in real estate a while, I'd say you don't have to choose between real estate and retirement accounts—it's powerful to do both. A Roth IRA, for example, grows tax-free and can complement your active investments by giving you another income stream in retirement. That way, you're not putting all your eggs in one basket—you're building multiple income pipelines: one from rentals, one from businesses, and one from tax-advantaged retirement savings.

Also, don't assume that investing in a Roth means you have to be in the stock market. With a Self-Directed Roth IRA, you can actually invest in real estate or even private businesses—things you're already good at—while still getting that tax-free growth.

You're doing great. Keep building, but consider how a Roth or Solo 401(k) could give your future self even more freedom and flexibility.