Diversify Your IRA with Real Estate

IRA tax code 408A allows you to purchase California land with your IRA without penalty.   By purchasing pre-developed land with your IRA or other retirement accounts, you will truly diversify your retirement portfolio.  Pre-developed land in the path of growth is a Land Banking strategy that has historically produced rewarding, long-term appreciation with minimal volatility.

IRAs Match Well with Real Estate for Long-term Wealth Accumulation
IRAs and 401(K) plans provide tax incentives to encourage people to save for their retirement years.  The tax incentives allow you to defer paying taxes on your earnings until withdrawn at retirement.  In other words, you are able to re-invest all of your earnings that otherwise would have been paid out in taxes resulting in a much larger wealth accumulation.  This is known as Tax Deferred Compounding Growth. 

Example: $50,000 earning 16% annually for 20 years

If the $50,000 IRA investment earns an average 16% annual return, it would grow to $873,600 in 20 years, a substantial boost to your retirement wealth.  The question is, what type of investment may provide returns of 10% or more?  We believe it is pre-developed land in the path of growth of a very large metropolitan area in California.  California’s population grows by 500,000 new residents each year.  That is comparable to adding a new city half the size of San Jose each year. 

The demand for land is growing rapidly and will cause carefully chosen land values to increase significantly.  The key is to know which direction the demand is headed.  Customers who have followed our time tested Land Banking formula have seen their land values grow by as much as 35% annually.  These numbers are for illustration and historical purposes only.  Your investment results might be very different.

Self-Directed IRAs and 401(K)s are usually required for land purchases. You must roll all or part of your other retirement plans into a true, self-directed IRA or 401(K) plan in order for your plan to hold title to real estate.  These plans are designed for investors who want to take charge of their future and have the freedom to completely diversity their portfolio. 

Land banking provides a buy and hold strategy with minimal management.  We recommend a minimum 10 year hold which is in the spirit of a retirement plan.  Keep in mind, land is not a liquid asset and may require time to sell.  We will help you when you are ready.