It’s a matter of choice as to which one fits into your retirement plan – for example: The couple buying the beach house with their Roth IRA’s may be planning to take the house as a tax free distribution at retirement. That makes great sense, however the average return on that house by the sea could be as much as 30% less than the $1500 per month condo you rented to the working couple who need a year round dwelling. Worse, gross revenues will be about the same.
The costs associated with vacation rentals average 65% to 75% of revenues, compared to 30% to 40% with a long term rental to that working couple in our example. Obviously, over the long term the best choice is the long term condo rental. With the postive returns, capital appreciation, combined with tax free distributions from a Roth IRA you can avoid the hassel and lower returns of seasonal renting and buy that beach house with your tax free cash!
Adam Bergman, one of the tax attorneys at IRA Financial Group, has advised thousands of clients and attorneys on the benefits of Self Directed Roth IRA with Check Book Control. Please contact him for further information.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP and Dewey & LeBoeuf LLP.
IRA Financial Group is the market’s leading “Checkbook Control” Self Directed IRA and Solo 401k Plan Facilitator. We have helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate tax-free and without custodian consent!