Should You Use Your 401(k) or IRA to Invest in Real Estate?
Investing in real estate can be a great path to create wealth while diversifying a portfolio of stocks, bonds, and other securities. But if you're thinking of using your 401(k) or IRA as the vehicle in which you make real estate investments, you need to consider what you gain and what you give up by doing so.
There are lots of ways to invest in real estate. Sometimes holding those investments in a retirement account works out great, but sometimes it's a huge mistake.
You can use a self-directed IRA or 401(k) to buy physical properties, but it's probably not a good idea. That's because there are a couple of big benefits to investing in rental properties that are somewhat limited when you own them in a retirement account.
Source Fool.com
