Tax-Derred Profits

PLANNING FOR ALL STAGES OF LIFE

Self Directed IRA's:  A New Trend In Building Wealth

Most people mistakenly believe that their IRA must be invested in bank CDs, the stock market, or mutual funds. Few Investors realize that the IRS has always permitted real estate to be held inside IRA retirement accounts. Investments in real estate with a Self-Directed IRA are fully permissible under the Employee Retirement Income Security Act of 1974 (ERISA).    

One of the most exciting trends in retirement planning is the ability to diversify your retirement investments beyond traditional wall street products, and invest in multifamily apartments. With accredited investor capital sources and qualified Self-Directed IRA Funds, Cornerstone Investments provides the opportunity for our clients to diversify and expand their retirement accounts with commercial real estate real estate holdings. 

Advantages of Using a Self-Directed IRA to Purchase Real Estate

When purchasing real estate with a Self-Directed IRA, in general, all income and gains generated by your pre-tax retirement account investment would generally flow back into the retirement account tax-free. Instead of paying tax on the returns of a real estate investment, tax is paid only at a later date (in the case of a Roth IRA the income/gains are always tax-free), leaving the real estate investment to grow unhindered. 

As Albert Einstein stated, "Compound interest is the most powerful force on Earth."  The power of compound interest is multiplied in tax-advantage accounts like an IRA. And in today’s volatile stock market, diversification into alternative assets like multi-family real estate is a smart way to both protect against market instability and to give your IRA the ability to grow tax-free or tax-deferred and compound over time to maximize your hard earned invested capital. 

For more information on Self Directed IRA's please contact us at:  Info@cornerstoneinvestments.org.