Los Angeles, CA (PRWEB) May 27, 2014
Real estate is the best long term investment option according to majority of Americans in every age group including retirement investors. This statement is supported by Gallup’s latest survey on Economy and Personal Finances poll. Investing in real estate using funds from retirement plans have existed long before the Solo 401k retirement plans for small business owners have been around. It is only during the aftermath of the great recession that self-directing investments to real estate and other non-traditional investments have become a standard particularly in self directed retirement plans.
Non-volatile market has been emerging in terms of retirement investments because account holders have become risk-averse in the instability of the stock market. More small business owners would rollover their traditional retirement accounts to Checkbook IRA or the Solo 401k because these retirement plan types can be self directed to virtually unlimited investment options which are tangible in nature like real estate.
Here are the most prevalent real estate investment types for retirement plan for self employed individuals:
-Rental properties like apartment buildings, residential property, condominiums, commercial property, and multi-family units can be bought using the Solo 401k retirement plans for small business owners. The rental income can be tax-free for Roth account or can be tax deferred and is directly deposited to the retirement account. All expenses on the rental property must come from the IRA or 401k, otherwise the owner can opt for triple net lease especially for the commercial properties.
-The self directed Solo 401k can also purchase raw land. The owner can divide the land and then develop or sell them.
-For account holders of retirement plans for small business owners who are expert in flipping houses, this could be a good investment because capital gains tax can be avoided.
-Real estate investments like buy and sell of real estate options and land contracts eliminate the risk of UBTI and could provide the benefits of leveraging effectively.
Sense Financial is California's leading provider of retirement accounts with "Checkbook Control": the Solo 401k and the Checkbook IRA. Over the years, they have assisted hundreds of clients obtain checkbook control over their retirement accounts while providing them with the ability to invest in virtually any investment class, including real estate, private lending, mortgage notes and much more without the need for custodian approval.
To learn more information about Solo 401(k) for self-employed real estate agents, please visit http://www.sensefinancial.com.