Self-employment is a common practice in the real estate industry, and this often happens when you find a self-employed real estate agent. There is no doubt that self-employment is a reward, considering the choice of working hours and your own tasks. However, if you start a retirement discussion, most self-employed real estate professionals will feel a little uncomfortable. Regular retirement plans are too small for them, and they don't think retirement is something that needs immediate attention.
Another common problem for real estate investors is the limitations of traditional retirement schemes. Most programs offer a donation limit of $5,500, and these investments are mainly made in the stock market or mutual funds. All of these factors make traditional investment choices less attractive to real estate agents. However, the self-directed 401k is a retirement plan that offers better investment opportunities.
What are the benefits of a self-directed retirement program?
The self-directed 401k program provides account owners with full investment freedom and they can manage their accounts themselves. Realtors® often work with their spouses or work alone, making self-directed 401k their perfect retirement solution. Another interesting aspect of these retirement plans includes investment options such as mortgage notes, real estate, tax incentives and precious metals investments. In addition, real estate professionals can use their retirement funds for real estate investment.
In addition to controlling the self-directed 401k program, these plans have significant contributions. For example, real estate agents can provide up to $53,000 in pensions each year in 2015. If they work with their spouse, even a small number of people can provide up to $53,000 in additional donations. For people over the age of 50, there is an additional additional investment of $6,000 in 2015.
Another advantage of self-directed 401k is the ability to borrow 50% of the available funds, up to a maximum of $50,000. Most real estate professionals need financial assistance in recurring transactions, and they can borrow money from their own targeted retirement accounts. The borrowed money has a reasonable interest rate, and you are actually paying interest for yourself. Borrowing from your retirement account will not have any impact on your credit history.
Managing these retirement accounts is easy and takes just a few hours to complete your account setup. People can choose banks, financial institutions and even private companies as their guardians. These accounts have the lowest maintenance costs.
With a self-employed retirement plan, you can enjoy your golden years as you have saved enough money for retirement.
Orignal From: Why self-guided 401K is a great investment choice for real estate agents
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