The Role of the IRA Real Estate Custodian
When the IRA custodian allows real estate, as well as other types of transactions, your retirement wealth is more secure, due to a greater ability to diversify.
It is always important to diversify investments within a portfolio, but even more so today.
Traditional IRA investments are not growing quickly enough to fund a person's retirement.
They are barely keeping up with inflation.
In order to have the retirement that you want, you need more options.
In a self-directed account, the IRA real estate custodian can give you those options.
You might think all self-directed account trustees would be able to provide their client's with the option of investing in real estate, but if you have looked into it at all, you know that they do not.
The learned IRA custodian allows transactions that will not jeopardize the tax deferred or tax free status of the account.
So, they must be familiar with all the applicable regulations.
Most of them find the subject too complicated and choose to stick with traditional investments.
In truth, it is not that complicated.
The government imposes only a few restrictions on real estate investments.
For example, you may not live in a house owned by your IRA.
You should discuss all of the dos and don'ts with your IRA real estate custodian.
If he or she does not seem to have the answers, you would be wise to look for someone else.
The firm, Equity Trust acting as the IRA custodian allows real estate and a variety of other investment options.
They can help with education, information and suggestions.
But, unless you are experienced in this type of investing, you might need a little more help.
The largest and quickest returns are usually deals that involve rehabbing homes.
With IRA funds, you can purchase, upgrade and resell homes at a profit.
The profits returned to the account are either tax-free or tax deferred, depending on the type of account that you have.
If you find the right property, it is possible to double or even triple your initial investment in a relatively short period of time.
On the other hand, it is possible to end up with nothing but a headache.
Just because your IRA custodian allows real estate investments does not mean that they can help you find the right property.
But, now there are some experienced investors that can help you with that.
They can help you avoid the headaches and the hassles.
They have the time, the energy and the know-how to help you invest your money wisely.
If you combine the right IRA real estate custodian with the right investment advisors, then you will have everything that you need to take advantage of all of the investment opportunities that are out there.
You may find that the value of your account grows faster than you ever dreamed possible.