Let’s face it.. you need to have one or more good retirement strategies in place to retire in comfort and do the things you always dreamed of doing.
Most employers have some form of saving retirement plan in place for their employees like a 401(k) or traditional IRA, but will it be enough when you are no longer earning a regular income. A self directed IRA passive income strategy could well be a viable addition or alternative investment vehicle for you. What does passive income really mean? It’s a means of earning additional income with little effort required to maintain it. Passive income can be generated many ways including rental property, interest, stock dividends, royalties, patents and pensions
Almost everyone is nervous about putting their hard earned money into the stock market right now, and most people don’t receive passive income from royalties or patents. Therefore choosing a self directed IRA seems to be a good investment option in the current economic environment, because it gives the owner more scope to invest in a passive income generating option like real estate. The owner is in control of all the assets and any transactions that occur. Creating passive income from real estate investing can be one of the best and safest ways to increase wealth. It tends to increase in value over a long period of time, and the owner has a block of land usually with a house on it, which is insured against common causes of damage or loss.
A self directed IRA passive income vehicle can be either a self directed IRA or a self directed Roth IRA, the rules and tax implications are different but the overall investment objective is the same, to generate a passive income stream so you can retire in comfort. Some investors who undertake this kind of strategy try to compound the effect by doing it over and over again thus building a passive income property portfolio. Not only do they get the regular income benefit throughout the term of the investment, they also have the opportunity of making a capital gain on the property if they ever decide to sell later in life.
If your looking for a better return than your getting now with your current retirement plan, consider looking at a self directed IRA passive income turnkey real estate alternative, that can give you a better return with more flexible investment options.
Mike Iredale is an active participant in a network of professional writers who advocate socially conscious real estate investing through the use of strategic retirement vehicles such as IRAs, 401(k)s and other retirement assets. For more information or to get involved, please visit now.