Welcome to passive real estate investing the show where busy people like you learn how to build substantial passive income while creating wealth for the long term and now here's your host

Marco Santorelli.

Hello, my friends, and welcome to another episode of Ask Marco,

where I answer your investing related questions.

Okay, so today's question comes in from Brock,

and he says, hello Marco, I just listen to your two-part

series regarding wealth growth and creation using one's IRA and found it very

interesting and I plan on listening to it multiple times. Am I able to do something similar to

this concept with my 401k or does it have to be a self-directed IRA?

Thank you very much for your time and podcast Brock. Okay so this is a very

good question and so just as a quick recap these are individual retirement accounts

these are retirement accounts that you can self direct and it gives you the investor control over the buy and sell decisions of whatever you're doing with it.

It permits the ability to invest in alternative investments, other asset classes from precious metals to even

cryptocurrency. A lot of people use them to invest in notes, performing and non-performing

notes. You can use it for real estate. There's very few limitations.

It's typically art collectibles and the light.

The short answer to your question is anything and everything you can do with a self-directed IRA you can

also do with a self-directed 401k. They're slightly different vehicles but they are

essentially accomplishing the same thing, which is allowing

you to defer the taxes that you would normally pay on income and gains that you make from your investments to later years.

And the power of that is that you can take that tax money or what you would be paying in taxes now today this year and applying that towards those investments.

So you actually have more purchasing power, if you will, because you have more to invest from the deferral of the taxes.

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