Self Directed Retirement Accounts: Real Estate Attracting Millennials

Solo 401k and Checkbook IRA plan allows real estate investment

There is a common belief that Millennials are adverse to buying homes. However, a recent article from the New York Times pointed out that more young investors are actually shopping for houses. The difference is that, Millennials may not want to become homeowners. What they are looking for are investment opportunities and passive income.

Although many young investors are not ready to commit to their first residence, there is an increasing number of Millennials who want to purchase houses for investment purpose. They typically rent out their apartments or houses to others. Rent helps pay for mortgage, and even provide a nice monthly income for some. After a few years, many even sell the house for a profit.

Many investors are simply investing with their personal savings. However, Millennials can also invest their retirement savings in real estate and take advantage of the tax benefits that qualified plans offer.

Contrary to a common misconception, the IRS does not prohibit real estate investments and other assets. It is the custodians and plan providers who often put a restriction on investment options for 401k and IRA accounts. Recently, however, with the increasing popularity of self directed retirement accounts, plan owners can now invest in real estate and other non-traditional assets.

Sense Financial recommends Millennials to look into self directed IRA LLC options. With that, the custodian takes a passive role and hand over total control to plan owners. Self employed Millennials also have access to the Solo 401k plan, which allows them to have Checkbook control over their retirement savings.

With the Checkbook Control Solo 401k plan, the account holder can invest in stocks and bonds, or go with non-traditional assets, such as real estate, private lending, precious metals and more. The plan allows much flexibility, such as the participant loan option, tax-free non-recourse leverage for real estate purchase, and a contribution limit of up to $59,000 a year.

With the uncertainties in the stock market, Millennials tend to look for better security. Adding real estate assets to their retirement investments with the self directed Solo 401k plan is a great way to diversify their investment. The passive nature of real estate investments also allows investors to generate passive income to fund their retirements.

Sense Financial is California's leading provider of retirement accounts with "Checkbook Control": the Solo 401k and the Checkbook IRA. Over the years, they have assisted hundreds of clients to obtain checkbook control over their retirement accounts while providing them with the ability to invest in virtually any investment class, including real estate, private lending, mortgage notes and much more without the need for custodian approval.

To learn more about Solo 401k, please visit sensefinancial.com.