Self-Directed 401

What are the real benefits of investing in real estate through a self-directed 401(k)? Are they really that big, do they go beyond just saving a little more on taxes?

Most Americans have already heard of self-directed IRA investing or 1031 exchanges for minimizing taxes in real estate investing, and the majority probably desperately wish that they could be getting more out of their 401k accounts. Real estate is clearly the best investment pick of the moment with commercial real estate emerging as the best sector for growth as we approach 2014.

Fortunately, U.S. workers can now take advantage of the best of all worlds by rolling over their retirement savings into self-directed 401k accounts and directing those funds into high yielding commercial real estate investments for tax free returns.

Going further; here are 7 reasons you really can’t afford not to adopt this strategy today…

1. Control

Self-directed investing means finally truly gaining control of all of your retirement savings and being able to ensure your investments are working for you as hard as they possibly can. With the recent safety concerns raised about the stability of even the largest employers and pension plans in the U.S. as well as the government’s solvency and ability to pay out social security benefits this is absolutely critical.

2. Forces Passive Investment

Investing in real estate is great, but far too many investors end up turning it into a more than full-time job with holidays and weekends mandatory. By investing in commercial real estate through your 401(k) you’ll turn over the active daily headaches and micromanagement to a professional third party property management company that will free up your time and allow you to get on with what you love most, even if that is continuing to build your portfolio.

3. Higher Returns on 401k Savings

With a real estate 401k you get to choose exactly how and where you want to invest for maximum returns.

4. Higher Returns on Real Estate Investments

Investing in real estate is good, but those that don’t do so through vehicles like this that provide tax protection end up losing double digits to the IRS.

5. Lowers taxes

Following on from the above, self-directed 401(k) investments in commercial real estate mean keeping what would otherwise go to the tax man and allowing individuals to earn compounded returns on those funds tax free for decades.

6. Wealth Protection

A 401(k) offers shelter from lawsuits and liabilities via privacy and classification as a retirement account, preserving wealth even when the worst happens.

7. Preserving Credit

Self-directed 401(k) investors are able to access and leverage non-recourse loans for growing their portfolios faster and seeing far higher returns without ever putting their personal credit on the line.