Hello and welcome to Moneygirls Quick and Dirty Tips for Ritchie Life.

I'm Laura Adams.

I'm Laura Adams.

Robert from Morganville, New Jersey wanted to know if you can use funds in an IRA to buy real estate.

Robert, thanks for the great question. Yes, you can buy real estate. Robert, thanks for the great question.

Yes, you can buy real estate using a special kind of retirement account that's self-directed.

A self-directed IRA allows individuals to diversify their retirement portfolio by putting money into different types of sophisticated investments besides the typical ones such as mutual funds and just

for business owners there are other options such as a self-directed 401k but I'll just

refer to IRAs in this episode since we're talking about individuals and just so you

know IRA used to be short for individual retirement account, but now the Internal Revenue Service calls it an individual retirement arrangement.

You can buy any kind of foreign or domestic real estate in self-directed retirement accounts, such as vacant land, houses, condos, commercial properties, foreclosures, and rental properties, for example.

You can also make other types of investments besides real estate, such as capital for private businesses,

notes, tax liens, and gold. The only two types of investments that you can't purchase in a

self-directed retirement account are life insurance contracts and collectibles

such as antiques, art, and cars.

Self-directed IRAs have the same basic rules

as regular IRAs.

If you're not sure what those are,

I'll include some resources for you

in the show transcript at moneygirl.

Quick and Dirty Tips. quick and dirty tips.

One of the main rules of all government sponsored retirement accounts

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