Hi, it’s Peter Aquart from American Wealth Builders.
If you’ve been following us for a while then you know we have a few cool strategies and legal tricks up our sleeves to help investors change their financial game and surpass even their wildest financial goals.
And the one I ALWAYS love to hear is when an investor calls us up because he or she has got a couple hundred thousand in their retirement account and they’re worried they won’t have enough to retire on… and after speaking to one of our Senior Wealth Strategists, they hang up the phone totally amazed that they can actually retire very comfortably NOW – by the age of 50 – by using our strategies, as opposed to some of the more commonly accepted “Wall Street Wisdom” out there.
A lot of investors call us because they want to know how to save for retirement if they have money in their IRA – but they don’t have a lot of cash in a savings account. Many folks are concerned that even though they’d prefer to invest in real estate, that they’re stuck investing in stocks because their money is in an IRA.
Nothing is further from the truth and it’s always a highlight in our office when we can educate investors on how it really works.
Your IRA or 401k is really just a special “bucket” of money. You make contributions to that money and get some tax advantages from investing in it.
But YOU DO NOT HAVE TO INVEST IN STOCKS inside your IRA/401k.
It’s a weird urban myth in the financial world that says your IRA or 401k is only for stock market investing.
You can actually invest in MANY different things inside your IRA/401k. It doesn’t have to just be stocks.
You can’t hold collectibles (like stamps or coins), or life insurance, or investments bought on margin (which is an advanced trading strategy).
Just about everything else is legal to hold in your IRA… including real estate (as long as you don’t live in it).
Here’s why this matters to you:
Chances are, if you’re like most investors, you know that you only have about 45 working years (age 20 to age 65) and in that time you have to pay for all of life’s very costly expenses AND save enough money in your IRA to cover you for the rest of your life.
It’s hard to save up that much into your IRA… so it’s no wonder that most Americans fall far short.
But with a cash flowing property in your IRA, all the cash flow can stay right in your account, basically contributing as much or more than you’d ever get around to contributing yourself!
Imagine holding a couple of properties in your IRA that each collect $1,200 a month in rent. That’s $1,200 every month that you don’t have to contribute. Or like one of our clients, maybe you can put 10 properties in your IRA, doing $600 each… that $6,000 a month in your IRA that you don’t have to contribute.
So, you increase your income by saving yourself from the necessity of sacrificing today to make contributions for tomorrow. Plus you get consistent income – building your IRA on autopilot.
And, since this is a real estate investment, it’s a hard asset with intrinsic value, which means it is far more likely to retain its value compared to stocks.
(I mention this because in 2007/2008, most Americans who were near retirement but held their retirement portfolios in stocks had to basically extend their working years another 5-10 years just to recover from the financial devastation.)
End result? Whether you’re 20 years old or 60 years old, you can buy real estate inside your IRA and watch your IRA grow quickly and steadily even without any additional contributions.
Here’s a quick breakdown of how it works (but make sure you call our office before doing anything because we can help you with the details)…
You can hold real estate inside a SELF-DIRECTED IRA, as long as the real estate is held in the name of the IRA. So don’t rush out tomorrow and buy your neighbor’s house in your own name and then try to stick it into your IRA because it doesn’t work that way.
You just need to flip your IRA to become Self-Directed, and then you need to make sure it’s held at an IRA custodian who will allow you to hold real estate (not all custodians do this).
This is SUCH a powerful strategy and I’m always telling the American Wealth Builders team to hammer this home to investors so they take advantage of it.
So, if you want to learn more, or if you want to find out how to flip your IRA into a Self-Directed IRA, or if you simply just want get an introduction to a custodian who will help you, we’d be happy to talk you through this.
It’s simple and fast… and you’ll change what retirement is like for you!
Call us on this ASAP!
American Wealth Builders
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