Self-Invested IRA – How Investing 401k Money in Real Estate Can Bring Huge Returns

Did you know you can roll your 401K plan into another account or even convert it to a self-invested IRA (otherwise known as a self-directed IRA) and invest those funds in real estate? It’s like putting your 401k into real estate, but a self-invested IRA will give you more control over what you invest in, where you invest, and how much money you use to invest.

While 401K plans have their advantages, they do have some disadvantages compared to some IRAs. With 401K plans, you are very limited in what you can invest in, specifically whatever your employer chooses to invest in. Even with a self-directed 401K, you will still be very limited in what you can and cannot invest in. Additionally, your employer may not even allow you to direct all of your funds into your 401K yourself; many times, you can only direct a quarter of YOUR funds yourself. And if you change jobs or your employer decides to switch to a new plan or something, your funds could be at risk. Does that seem fair to you?

Instead, switching to a self-invested IRA is preferable because all of your 401k money will be rolled over into the new plan and YOU can decide who your account advisor is to help you prioritize your individual needs. Traditional IRAs have significant restrictions on what you can invest in as well. Therefore, a self-invested IRA will give you far fewer restrictions on what you can invest your funds in. Now, by investing IRA money instead of putting 401k money into real estate, you won’t have a limit on how much of your funds can be used to buy investments.

A self-invested IRA has your best interests at heart. Your employer, who is in charge of your 401k investments, sets things up so that they get the most benefit for themselves. This means YOUR interests will be further down the priority list. Is this how you want to manage your money?

That’s what makes a self-invested IRA so great. You decide what you want to invest in, how much you want to invest and who will give you the right advice to help you meet your investment needs.

There is a downside (if you want to call it a downside) to a self-invested IRA. The element of control from your employer that you might get with a 401K plan is gone, meaning that you are solely responsible for the proper management and direction of your IRA funds. But the good news is there is help for you. You just need to find the right company that will point you in the right direction and complete all the necessary documents. In fact, you can eliminate almost all of the headaches associated with managing your self-invested IRA plan by finding the right custodian. The custodian will help you with everything, but still won’t control what happens to the account.

So, instead of just using the small funds your employer has allowed you to invest in your 401k in real estate, you can now look for the right company that offers turnkey investments and respected trustees who will take care of all the headaches. , which come with self-invested IRAs. It’s amazing how you can choose the most effective investments when there is no third party to limit what you can do with your retirement funds. This can really open the door to amazing benefits, especially in our current economy.

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