Did you know you can use your 401K or self directed IRA retirement accounts that you either implemented through an employee-employer plan, or opened up yourself, to fund the purchasing of real estate notes? Many people are "dipping" into their retirement accounts because they have learned that real estate notes offer them the ability to increase the dividends usually earned through such retirement accounts, securely and reliably.
Will you be among the 'wisest' of real estate investors and look into the "viability" of real estate notes as an investment strategy to best increase the dividend-earning power of your retirement money? The Internet provides you with access to all of the information you need to learn how real estate notes can help you to "retire-in-style" without the "risks' unlike so many of the other investment opportunities out there today.
The benefits of real estate backed notes are they:
1. Generate passive income.
2. Are secured by real property.
3. Are taxed at low long term capital gains of 15%.
4. Can be purchased with a self directed 401k or self directed IRA.
Another quick note about real estate note investment gains earned inside an IRA or 401k:
Gains earned and tucked back into the IRA/401k are earned on a tax deferred basis and are taxed at ordinary income tax rates at the time of distribution starting at the age of 59 ½. Gains earned off your real estate note investments inside your Roth IRA or Roth 401k occur on a tax deferred basis and distributions are earned tax free at the time of distribution. If you use a Roth IRA/401k, you'll have years of tax-deferred growth on your investment - and NO TAXES at the time of distribution.
How does that stack up against 15% long term capital gains? Right... There is no comparison.
If you are already over the age of 59 ½ and have a Roth IRA that has been open more than 5 years, then you are perhaps in the sweetest spot of all, as all your gains filtered through your Self Directed Roth IRA can be distributed to you tax free without any waiting periods. This could be the ultimate leverage and a way to grow your personal wealth.
Real Estate Backed Notes could just be your "hot" ticket to financial success in "cool" times.
Thursday, December 25, 2008
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