Ask Terry Questions Real estate as a retirement investment

Real estate as a retirement investment

By Terry Savage on July 26, 2013 | Financial Planning / Retirement

We have an opportunity to buy a vacation, shoreline, home at a good price. The property has been professionally managed as a rental property for over ten years, returning a small annual profit. We have sufficient liquid assets to make a cash purchase, but they are all tied up in retirement funds. Can we purchase the property as a tax-deferred retirement investment? Thank you for your advice.

SAVAGE SAYS: There are trust companies that can act as a trustee for assets such as these within an IRA. But there is a catch:? you can’t use it for personal purposes; it must remain strictly an investment property. And any additional funds needed for upkeep would also have to come from your?IRA. I don’t think that’s what you have in mind. So you’ll have to pay for it with money held outside the IRA,? and declare any income from rentals on your tax return.

Recent Financial Planning / Retirement Questions

money

ASK TERRY

a personal
finance question