Can a rental property be used as a Roth IRA investment?
OhioGuy
just mutual funds. Previously, I always thought that mutual funds were
pretty much it for IRA investments. Now I've got the $ in a couple of
safe, dividend paying stocks.
Recently, I saw a bank owned rental property for sale at about 80% of
what I have in the IRA. It got me wondering - could a person possibly
use the money in an IRA to buy a rental property, then use the rental
income to fund their IRA?
I'm not sure how such a thing would work, or if it is even possible.
Of course, last year I thought you couldn't invest an IRA directly
into favorite stocks, and I was wrong there. I know I could easily take
the $ and invest in a REIT stock, which would be similar to what I'm
talking about. However, it would also likely be much less profitable,
and I would have little or no control over anything that goes on with
the investment.
My understanding is that there is a huge fine for early withdrawal of
IRA funds. Not really sure how I could avoid that, since I'd need to
withdraw the funds in there to buy the place.
Anyone have any ideas on this? Thanks for your input.
Mark Anderson
> Anyone have any ideas on this? Thanks for your input.
The first place I go for any advice on complicated financial, legal, or
relationship matters is here on Usenet.
terry
Maybe in the USA you can. Because in some other countries, Canada for
example, we can invest our RRSPs (Registered Retirement Savings Plans)
into just about whatever we like. Which includes mutual funds, cash
bonds, stocks etc. etc. but doubt it it includes holding a direct
title to some property?
Owning shares in a real estate company, maybe your own company, might
work but you would have to set up that company and there is/are costs/
expense/taxes to do so!
Like everything you'll have to do your homework and educate yourself
in all these matters, but you should be congratulated for thinking
about this and starting to investigate.
Strongly suggest you talk to an investment advisor who has a good
'tax' background regarding IRAs.
A personal comment is; 'Is it wise to sink so big a portion one such
an important investment into one item'? Only you can consider the risk/
s and decide, depending the amount, your age group and whether you
would have other pension income etc. etc.!
Best of luck.
Vic Smith
Me too. But to be safe I get a second opinion from my parrot.
Trust but verify.
--Vic
itsjoan...@webtv.net
> On Mon, 29 Sep 2008 05:24:58 -0500, Mark Anderson
>
> <m...@nospambrandylion.com> wrote:
> >> Anyone have any ideas on this? Thanks for your input.
>
> >The first place I go for any advice on complicated financial, legal, or
> >relationship matters is here on Usenet.
>
> Me too. But to be safe I get a second opinion from my parrot.
> Trust but verify.
>
> --Vic
>
>
My cat gives me great advice on any subject I bring up. Perhaps the
OP should consider getting a cat, too??
Jeff
I can help with that. How many free advice givers will you be
needing. Let me start you out with 4.
Jeff