1008: The Pros and Cons of Using Real Estate in Your Retirement Plan - Episode 1008
Investing in Real Estate with Clayton Morris | Investing for Beginners
Clayton Morris
4.1 • 1.1K Ratings
🗓️ 14 December 2023
⏱️ 8 minutes
🧾️ Download transcript
Summary
To help you determine if buying rental properties in a retirement account is right for you, we’re going to run through some of the pros and cons, and the things you need to consider as you’re building out your retirement plan. Click play to learn the pros and cons of using real estate in your retirement plan!
Transcript
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| 0:00.0 | Let's talk about the pros and cons of using real estate in your retirement plan. |
| 0:09.6 | Welcome into the show everyone. |
| 0:10.8 | You know, alternative strategies for retirement are growing in |
| 0:13.7 | popularity and for good reason. More and more Americans are realizing hey that this |
| 0:17.5 | traditional way of saving for retirement is totally outdated. It's broken, it's |
| 0:21.6 | ineffective. |
| 0:22.5 | 401k plan is going to make me retire wealthy, no it's not. |
| 0:26.5 | But buying real estate investments is a great way to exponentially grow your wealth |
| 0:31.1 | and save for retirement. But if you're not familiar with this topic, |
| 0:35.1 | getting to know the inner workings of buying real estate as a retirement plan |
| 0:38.6 | can be a little confusing. So please pay attention here. It's important to know that you know what you're getting into because there are certain things that you can and cannot do when it comes to tax favored retirement accounts. |
| 0:50.0 | So to help you determine if buying rental properties in a retirement account is right for you, |
| 0:53.7 | we're going to run through some of the pros and cons and the things you need to consider as you're building out your retirement plan. |
| 0:58.8 | So the pros, let's start there. Number one, buying real estate in a tax favored account offers more freedom and more |
| 1:05.6 | controlled than traditional retirement accounts can provide. |
| 1:08.2 | So if you're using a plan like a self-directed IRA, it allows you to buy a wide variety of asset types, including real estate investments. |
| 1:15.7 | Unlike a traditional retirement account such as a 401k, a self-directed IRA allows you the freedom |
| 1:21.4 | to choose the specific investments you want in your |
| 1:24.4 | portfolio. Number two, certain accounts allow you to create tax-free growth on your |
| 1:29.4 | real estate investment. So if you're using a tax advantage account such as a self-directed IRA to buy rental properties, all of the income you earn inside of that account of course is growing tax free. |
| 1:40.0 | Number three, real estate investments offer a high level of security than traditional |
| 1:45.2 | investment types so a stock-based retirement plan leaves your funds totally vulnerable to the |
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