by Jackie Beck

I’m going to do it: I’m going to dive in to a self-directed IRA — one I can use to invest in real estate. Truth be told, I’m still a little nervous about the process, but that’s probably because it’s new to me. (Kinda like eating a new food, or traveling to a new country where I don’t speak the language.) Except this time, it involves investing in real estate while making sure to comply with IRS rules and regulations regarding retirement accounts. Read the rest of this entry »

by Jackie Beck

If you work for a company that offers a 401(k) plan, you can almost certainly afford to contribute to the plan. Yes, you.

I know, it can be easy to think that you can’t afford to contribute, what with all the bills and whatever else is going on in your life right now, but you probably can.

And you almost certainly should, if your company offers a match. (At least up to the match amount, if possible.) Read the rest of this entry »

by Jackie Beck

I’ve been itching to invest in real estate for a while now, but have been holding off because I intend to pay cash. It occurred to me recently that I might be able to do so faster through a self-directed IRA.

What’s a self-directed IRA, you may ask? As the phrase implies, it’s an IRA that you’re the decision-maker on. (As opposed to having a broker or bank manage your IRA investments for you.)

So could it be a good idea to invest in real estate within self-directed IRA? Maybe. Read the rest of this entry »

by Jackie Beck

Did you know that there’s no required minimum opening amount for an IRA? That means that even if you’ve just got a buck, you can go ahead and start one right now. (Assuming you meet the other requirements, which are spelled out in Publication 590.) Read the rest of this entry »

by Jackie Beck

If you’re thinking of withdrawing or borrowing money from a 401(k) to pay for something you want to buy — or even to get out of debt — think again first. And then again and again, because there are some very good reasons not to raid your 401k account early. (Yes, even if you intend to put that money back or are planning to use it for something “good”.)

In a nutshell, retirement money should be for retirement — and nothing else. Doing anything else with that money is like shooting yourself in the foot and then expecting to win a race. Even if it weren’t, there are still 4 very good reasons not to raid your 401k. Read the rest of this entry »

by Jackie Beck

The basics of opening an IRA are simple in theory:

1. Decide which type of IRA you want and qualify for (Traditional or Roth, if any — making sure you are under the IRA contribution limits)
2. Choose a trustee
3. Fill out some application forms
4. Choose what you want to invest/save your money in
5. Start sending money in — up to the applicable contribution limit or what works best in your situation.

In practice though, there’s a little more to it than that. In fact it’s common to be confused about just what an IRA is exactly. Read the rest of this entry »