“Preparation for old age should begin not later than one’s teens. A life which is empty of purpose until 65 will not suddenly become filled on retirement.” ~ Dwight L. Moody
As a real estate investor, you might already have a couple of properties set apart for your retirement. What’s safer than the asset you already know about! While this is a sound strategy, you are missing on the tax-saving benefits offered by retirement plans. If that sounds like you, you’re a perfect candidate for a Solo 401 k retirement account.
What is a Solo 401 k retirement account and how does it connect to real estate investing?
That’s probably the first thing in your mind.
A Solo 401k retirement plan targets self-employed professionals and owner-only businesses, allowing them to contribute up to $60,000 towards their retirement.
The IRS allows purchasing real estate through a Solo 401k retirement plan, giving you the opportunity to add real estate to your investment portfolio. The tricky part is that the IRS doesn’t require financial institutions to offer real estate as an investment option; so, that’s the reason why you don’t find it in their investment options. Further, financial institutions don’t make money when you buy real estate; another reason to keep it away from the investment asset list.
Here is a small presentation about real estate investing using retirement funds.