Many of us have most or all of our retirements in a 401k at work. However, if you can access your 401k funds your can roll some of them over into a Self Directed IRA. This can give you more flexibility and allows you to take advantage of economic downturns instead of being taken advantage of.

If you have the money in your 401k to purchase some real estate, a Self Directed IRA LLC will allow you buy the property using the funds from your account. (Self Directed IRA LLC are more expensive in California and Illinois but there are other options for those states.)

It will take about $2000 plus a state filing fee to set up the account. That will include the set up of the IRA, the LLC and guidance on how to proceed. That cost also includes consulting after the plan is up and running.

If you purchase the property as a rental all rent is paid directly to the LLC and continues to grow your investment. Taxes, maintenance costs, etc. are paid by the LLC. So your personal income isn’t involved.

It’s important to remain diversified and do this with only part of your retirement. Opportunities exist for purchasing real estate at low prices, now is the time. Rental income plus the appreciation will have a huge impact on your retirement.

To maximize rent revenue, buy the best house in the worst neighborhood. To maximize appreciation, buy the worst house in the best neighborhood. But find the best deal you can.

Be sure of what your doing and don’t rush into anything. Find a good company to work with. Work with people you trust.

When you retire, you can keep your Self Directed IRA LLC. The LLC can pay you as you need money. If you prefer, you can take ownership of the LLC yourself. It’s just important to take ownership of your financial life and make something happen.

NAFEP (The National Association of Financial and Estate Planning) wants to put you in control of your finances with the following: self directed IRA and self directed 401k products, administrative and custodial services.