June 28th, 2016 By James Soletti in Blog.
Approaching retirement I have been thinking more about the safety of my retirement nest egg. Earlier this year I transferred all of my IRA savings out of the stock market and into a self-directed IRA account with Equity Trust. The risk to my principle if I stayed in the stock market was just too much for me. Because the money went directly from one IRA to another, there was no penalty to make the move. The new company charged a fee to set everything up and to perform transactions but my principle in no longer at risk in the roller coaster stock market. There are a lot of companies in the self-directed IRA business to choose from so understand I am promoting diversification not the Equity Trust Company. When my transfer was complete, my self-directed IRA purchased an income producing single family home here in Austin with cash. Now, with no mortgage to pay, all the monthly net rent income (after Eanes Properties Management Fees) goes directly into my self-directed IRA account tax free. Insurance, property taxes and any repair bills are paid directly from my Equity Trust self-directed account. Now my retirement savings are invested in a stable, real asset that is not going to suddenly loose value or disappear. I also like that when I decide to sell all of the gains will be tax free! The sales proceeds will go right back into my self-directed account and will be available for my next real estate investment, to move back to a more traditional IRA account or to use as I see fit! With the Austin economy continuing to out perform most of the rest of the country and the future of our real estate prospects here looking solid perhaps now may be the time to consider protecting a portion of your IRA savings from the volatile stock market to your own self-directed IRA where you can invest in income producing real estate. Let me know if you have any questions or want to check in to see how my investment is doing.