Using Your IRA To Invest

Most people do not know that they can use their IRA or 401(k) to buy real-estate. You can access your IRA at your local bank using an IRA check book which allows you complete control of your retirement savings.

These plans can then be used to invest in real-estate. It is also possible to get a loan to purchase real estate using your IRA as down payment which allows for diversification of your portfolio. This loan is a non recourse loan as required by the IRS.

Benefits of a self directed IRA LLC

One of the main reasons to do this is so as to diversify your portfolio.

You will not pay a penalty if you use this money with the additional benefit of growing it, instead of leaving it in the bank to earn minimal interest. Leveraging part of it will allow you to make real gains.

As a real-estate IRA investor, you are allowed to purchase

• Rental property

• Commercial buildings

• Multifamily apartments

• Land

• warehouse

• Rental property

Numerous savvy investors are now using self directed IRA’s to purchase real estate just as you would buy stock market securities. You will not incur early distribution taxes or penalties and additionally earn a tax deferred income from the rental payments you will receive. This is because the rent is seen as a return on your IRA and not an income and therefore not tax deductible. When you sell the property, the same rule applies and you will not be taxed.

Who is behind a self directed real estate IRA

This option has been available since 1974 when the Employee retirement Income Security Act was passed.

Using a non-recourse loan together with your IRA is a powerful wealth building tool. The first step is to make sure that you work with a reputable facilitator, real estate lender and tax professional.

How to make this possible.

The first thing that you should do is establish a self directed IRA. This means setting up a limited liability company so as to hold the assets.

1. Find an administrator willing to allow you to use your IRA funds.

2. Find out what the terms are, as most administrators are in it for the money, so do your homework.

3. Roll over your retirement benefits to the new account. You should know that

4. The more money you have, the better off your self-directed program will be

5. If you do not have enough money, you will need to be able to contribute $5,000 per year.

6. It will take you two to three weeks to open an account with a broker to hold your IRA

7. You cannot take advantage of the funds made until you retire.

Investing in real estate is a good move as it is a long term investment that will provide you with income, or save you some expenses like paying rent. Make sure you understand all the advantages and disadvantages of this type of investment. Seek legal advice and talk to an accountant and real-estate agent so as to find out exactly what will be required of you.

offers practical retirement planning tips to people who are on the verge of retirement but are not financially prepared. He advises people to invest for their better future using their IRA plans and take help of retirement plan services to get the best advice. For more retirement planning tips,visit Self Directed Retirement Plans LLC.

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Save money by combining auto and home insurance

A home and a car are one of the major investments we make in our lives. Protecting them with insurance is of utmost importance. With the rising costs in premiums every year, you need to find a way to get the best possible deal and still save money. Combining or bundling the auto and home insurance can help you save from 5% to 20 % in your insurance costs.

According to the J.D. Power and Associates 2012 U.S. National Homeowners Insurance StudySM based on responses from more than 12,600 homeowners insurance customers, satisfaction improves among customers who bundle other policies with their homeowners policy, contributing to higher customer satisfaction with homeowner insurance companies.1

"The increase in satisfaction with policy offerings is directly related to customer perceptions that insurers are doing a better job in offering the right coverage options at competitive prices when policies are bundled," said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. "Bundled policies not only may provide a reduced premium for customers, but may also be advantageous to both parties, as it allows customers to interact with a single insurer, potentially streamlining both billing and payment."2

Combining the home and auto insurance also cuts down the policy fees and administrative fees, since you are buying one policy instead of two. It thus makes sense to combine the home and auto insurance and cut down the costs considerably. The more you insure, more your savings.

So what are the benefits of combining home and auto insurance? Here are some of them.

Lower Premiums:

According to a report from the Insurance Information Institute, consumers can save as much as 15 % on their premiums by combining home and auto insurance with one insurance company.This means a saving of hundreds of dollars a year and getting a good coverage on their home and auto insurance. Insurance companies also offer additional perks from accident forgiveness to discounts for automatic bank withdrawal of premiums and many other discounts on both your auto and home insurance. You should enquire about the discounts offered directly with the insurance company.

Power of One: Bundling policies makes all the transactions centralized and most convenient for the consumer. You have to sign and then renew only one contract and make one payment. If you have any queries, have to make a claim or have to contact the insurer, you can contact one person and have all the information. You spend less time sorting through the payments and other formalities. You can also be ensured of a better customer service because you hold multiple policies with the insurance company.

Only one deductible to pay: When you have separate insurance policies, you have to pay two deductibles for all covered possessions damaged in a single occurrence. However with bundled insurance you have to pay only one deductible. Some insurance companies even waive your deductible if the loss exceeds a certain amount.

No gap in coverage: Bundling insurance also helps to patch up any gaps in your insurance coverage. Suppose two different companies are covering your home and auto insurance and damage occurs when you are moving something from place to another in your car or truck. The auto insurance company may decline your claim saying damages to the item should be covered by the home insurance company, while the home insurance company may refuse to pay because the damage did not occur at home. However, if you have a bundled insurance with one company, there would be no such gap in coverage.

Less risk of cancellation: Insurance companies sometimes cancel policies, when certain types of claims are made against policy coverage. Though these cancellations are rare, the insurer may be careful cancelling a policy if you have two or more policies with them for fear of losing a customer with multi policies.

Considering all these benefits, combining auto and home insurance will not only save you money but save a lot of trouble and of course your time .You can have the satisfaction and peace of mind knowing that you have your home and car well insured within your budget. You should shop around and compare costs and settle for the best deal suitable for you.

Summary: Want more for less….In this age of combo-meals, combining and saving is the trend. So if you want to save money on your insurance costs, combining or bundling insurance policies with one company is the best way. You can combine your home,auto and even your life insurance and save a lot of money.

Author Bio: Elvis Donnelly is a father of two who works from home and lives with his wife. He is voracious reader and always looks out for happening topics related to personal finance. He specializes on subjects related to insurance and uses his spare time to write on topics related to auto insurance, car insurance calculator, business marketing etc.


#1 Way Proven way to Reduce Debt! - The Snowball

Research has shown one of the best way to reduce debt is the snowball effect. Paying off debts can not only help you financially but mentally. There is a sense of accomplishment and relief after seeing a debt account has been closed, so start with the smallest debt you owe and pay it off the quickest you can. David Gal, an assistant professor of marketing at the Kellogg School of Management at Northwestern University said, “It’s not the number of dollars you’re paying off, it’s the number of accounts you’re closing.”

In order to achieve your long-term goal of debt elimination, you need more than just money to pay it off. It is proven that getting out of debt is just as much as a physiological one than a financial one. If you gain a quick win, for example paying off your smallest debt first, it helps build the perception of progress, which can be used for other long-term goals you wish to set in your life. Essentially, “checking” something off of your to-do list gives you satisfaction and the motivation to keep “checking” things off your list.

How this strategy works -  start paying off the accounts with the smallest balances first while paying the minimum on larger debts. Once the smallest debt is paid off, proceed to the next slightly larger small debt above that, so on and so forth, gradually proceeding to the larger ones later. As each smaller debt is repaid in full, the money used to pay that debt is then applied toward making additional payments on the next-smallest debt, and so on until all debts are repaid. By the time the final debts are reached, the extra amount paid toward the larger debts will grow quickly and your largest debt will be paid off faster than expected. And you can also use the same method after your debts are paid as a means of savings!

Call an expert today at Get Debt Free, for professional advice, tailored to suit your needs and circumstances on 1800 981 070, or visit

Traditional IRA and Roth IRA: which is to choose?

Many people really don’t understand the difference between the most popular IRAs and they don’t know which is to choose. Both Traditional IRA and Roth IRA have their own advantages, and it’s up to you which will be better. I will try to differentiate them to make the question clear.

First of all, I would like to mention that contribution limits are the same, so this factor is not to pay attention for.  As for age limitations, you should keep in mind, that if you want to contribute to your IRA as long as possible, I would recommend you to choose Roth Ira, because there are no age limitations, and to Traditional IRA you can make contribution only up to age of 70,5. What is more, you should remember about some income limitations. You can’t contribute to Roth IRA if your income goes beyond certain limit. One of the most important things you should know, that Roth IRA is never deductible. What about the Traditional IRA, you can deduct your contributions only if you meet certain requirements.

What is more, Traditional IRA becomes tax-deffered, which means that you won’t pay taxes if you don’t withdraw your contributions. If you withdraw them, you’ll pay for your contributions and earnings. On the other hand, there are no such taxes in Roth IRA, which makes it the winner in this battle. In addition to this, bear in memory some distribution rules. In traditional IRA distributions are treated as common earnings and have its taxes. At the same time such distributions are tax free in Roth IRA.

So, summing everything up, we can see that Roth IRA has more advantages and if you want to achieve the safe retirement it would be better to use this one. You can also contribute to both IRAs, but you should still remember, that your total contribution mustn’t go beyond the tax year. What is more, you should think about additional fees and consider all the benefits. The other way out is to convert from Traditional IRA to Roth IRA, but my advice is to consult your tax adviser before making your decision, because it can cost you too much if you do it the wrong way.

We must think about the future and to know definitely which one we want. If you use the Traditional IRA you will stay at the same tax bracket or even at a lower one, while Roth Ira guarantee you higher tax bracket and better retirement. So, take all the factors into consideration and I am sure you will make the right choice.

About the Author:

Paul Smith works at as an essay writer.

He likes everything absolutely new for him and he would like to write more interesting articles. Read his essays and have pleasure!



Check out: Best Options to Invest in Fixed Income for 2013

A lot of retired people live on a fixed income. When a retired person lives on a fixed income, he or she must watch expenses closely. A pensioner must also invest their existing funds wisely. Here are the five best options to invest in fixed income for 2013.

A lot of investors love bonds. There are plenty of tax free bonds that are perfect for people on a fixed income. When investing in bonds, most investors do not have to worry about market fluctuations. Of course, bond rates and risk amounts can vary depending on the company.

Of course, some people who are on fixed incomes do not have a large tax bill. For this reason, a corporate bond may be the answer. In reality, a corporate bond will pay a higher rate than a tax-free bond and the tax implications may not make a difference if the investor has a low tax liability.

The rates for certificates of deposit are not high, but they have improved. In reality, an investor who wants no risk should consider investing in a CD. Sometimes, an investor can get a decent rate on a five year certificate of deposit. Of course, a person on a fixed income must realise that the money will be tied up for a long term. In fact, most banks will charge a steep penalty for withdrawing money early.

A lot of investors do not like the stock market. With the markets, an investor can invest safely if he or she chooses the right stocks. There are plenty of dividend paying equities that would be perfect for an older person on a fixed income. Dividend paying stocks are great as an investor can make money off the dividends while also making money with a rising share price.

Finally, a smart investor on a fixed income can look into rental properties. In reality, becoming a landlord is not the dream of everyone, but it can be a great way to make money. With property, an investor will have a solid asset that makes them money on a monthly basis. Not only that, it is often easy to write off many expenses associated with owning an investment property

When on a fixed income, an investor must be careful to protect their assets. Ideally, when investing, one will make smart choices and protect their assets. In reality, there are number of excellent ways to make money investing whilst still protecting ones assets.

Author Bio: Hello readers, I am Maria Benson, a blogger working for ppi claims. I am into health and finance. You can catch me on @financeport.