Is that pension just sitting there burning a hole in your pocket? Would you like to add another element of risk to your financial situation? Diane Kennedy, a tax strategist has some ideas for you- put that pension in real estate! Here are some excerpts from her article in tuesday’s Realty Times:
Many of you buyers have a source of investment capital that they haven’t considered — your pensions.
Many people don’t know that they can use their pension funds to invest in real estate. The truth is it’s entirely possible and perfectly legal — with a self-directed pension plan.
If you don’t have enough money to buy real estate outright with pension funds, don’t worry. You can combine one or more smaller funds together to make a single purchase, or you could approach one of a growing number of mortgage brokers and financial institutions that offer loans to self-directed pensions. This is a particularly effective strategy to use with the Solo 401(k) plans, as these plans don’t require you to pay tax on the earnings that are derived from loans to the pension plan.
I’ve read estimates that say there is approximately a trillion dollars sitting in pension plans in America. Imagine what that money could do in the real estate market.
