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Gold Roth Ira Pretax

Tired of dismal stock returns and lack of control over your retirement funds? Many investors are accessing tax advantaged retirement funds to realize the security and returns offered through real estate and note investments.

Through the power of self-directed retirement accounts, you can legally access IRA, 401(k), SEP or other retirement funds for alternatives to the traditional stocks, bonds, and mutual funds.

The Word is Out

While self-directed retirement accounts have been around for several decades, they are now catching the attention of investors and financial planners alike through educational materials and articles published by mainstream publications.

The Wall Street Journal has run several articles on notes and real estate in retirement accounts including “Using IRAs to Buy Mortgages Boosts Benefits” (Section B6, December 15, 2004). Additionally, plan administrators are increasing education to include accredited instruction on the power of self-directed retirement accounts for real estate agents, accountants, and financial planners.

Count the Benefits

It makes financial sense to harness the opportunity for legal tax deferral offered through Individual Retirement Accounts (IRAs) and Qualified Plans (401(k), Profit Sharing, etc.). Consider some of the benefits:

• Contributions might be tax deductible or made with pre-tax dollars allowing you to save money AND receive an annual income tax benefit
• Earnings and gains accumulate tax deferred or even tax free in the case of a Roth type IRA
• Plans can be opened with as little as $500 or less with the option of contributing up to $49,000 annually under certain plans in 2009
• Initiate a tax free transfer or direct rollover of funds in an existing IRA or 401K account to a self-directed account
• The self-employed or business owner can take advantage of allowable contributions for both the employer and employee
• The power of self-direction enables higher yielding investments including investment real estate, rental homes, options, notes, tax liens, factoring, discounted receivables, LLCs, and the list goes on
• Participate in larger investments by partnering self-directed retirement funds with others
• Utilize the power of leveraging real estate within a self-directed retirement account (certain restrictions apply)

Watch Your Money Grow

Still looking for motivation? Investing just $160 per month at a 10% monthly compound yield will grow to $1,011,852.73 in 40 years. Even better, investing $450 per month at the same yield will grow to almost 3 millions dollars ($2,845,835.81) in those 40 years. Managed correctly, this investment could be made with pre-tax dollars with earnings tax deferred until distribution or withdrawal.

The average investor may wonder how they will ever achieve a 10% return in a low interest rate market where the prime rate is 3.25% and banks are paying investors around 2% on certificates of deposit (CDs). Fortunately, note investors know how to tap into double and sometimes even triple digit returns.

Tracy Z. Rewey has been making money full time with note investments for over 20 years.

She teaches investors how to purchase real estate and notes in their retirement accounts for high returns backed by tangible assets. Gain knowledge from a well-known cash flow expert and author through real life examples. Read in-depth articles and sign up to receive a free weekly eLetter at: http://www.noteinvestor.com