Updated over 10 years ago on . Most recent reply
Greetings BP Family
I just wanted to take a quick minute and introduce myself. My name is Chris Armstrong, I'm originally from Cincinnati, Ohio. I currently live in Olympia, Wa, where I retired from the Army. I have very little real estate experience, I do own 1 investment property currently. Looking to connect with anyone who would like to connect. Going to start my intesting career in Ohio, more specifically Cincinnati. I look forward to interacting with the BP Community in the coming weeks and years. I do have one ? before I sign off for the moment. I was listening to podcast 49 and the topic of self-directed IRA's came up. I know I hear a lot of the podcast guests speak about Rich Dad Poor Dad being the motivating factor that got them into real estate. I was wondering does the community support Robert Kiyosak's stance that investing with a self-directed IRA makes no sense? Thanks again and Be Blessed. Chris
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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
welcome, its good to have you here and thank you for your service!
Generally, self-directed IRA's are good way to invest, I am not saying that real estate is the best investment (although it could be for some), but they allow investment into non-traditional assets beyond the conventional retirement account limitations. Your overall strategy will depend on your particular situation, there is no 'one size fits all' approach when it comes to this subject.
The reason you may have heard Kiyosaki not fun of investing with SD IRA/401k is because if you are building your wealth now then you will be in a higher tax bracket in retirement so tax deferred accounts might not be as beneficial to you. And I agree with that - if your income is going to increase at retirement then it is better to pay taxes now at a lower tax bracket.
However, there is more to it. There or options such as Roth IRA and Roth Solo 401k, which would enable you to grow wealth not just tax-deferred, but tax-free!
There is certainly a place for SD IRA/401k in the overall financial plan for most people.