{"id":13736,"date":"2022-07-19T09:14:40","date_gmt":"2022-07-19T14:14:40","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=13736"},"modified":"2022-07-19T09:14:40","modified_gmt":"2022-07-19T14:14:40","slug":"should-iowans-include-real-estate-in-their-retirement-plan","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/should-iowans-include-real-estate-in-their-retirement-plan","title":{"rendered":"Should Iowans Include Real Estate in Their Retirement Plan?"},"content":{"rendered":"
Investing in real estate is one of many ways to set aside funds for retirement. If diversifying your savings is a golden-year goal, then including real estate could be an advantageous strategy.\u00a0<\/strong><\/p>\n Iowa<\/a> is perhaps one of the most retiree friendly states in the United States. Its low cost of living and substantial tax benefits are two of the main reasons why people choose to retire in the Hawkeye state. On top of that, its pleasant summers, local food options and good-willed people make it a welcoming destination to live out your retirement years.<\/p>\n Many Iowans and Americans alike continue to seek new and beneficial ways to help build their nest egg. Are you looking to use funds to invest in real estate? There are advantages and disadvantages that come with property investments, along with different options to consider, including real estate. <\/span><\/p>\n If you\u2019re in the process of retiring and looking for ways to\u00a0 strengthen your retirement plan, Johnson Wealth and Income Management can help. Here\u2019s what you need to know about including real estate in your retirement plan.<\/span><\/p>\n Including real estate in your retirement plan might consist of:<\/p>\n While real estate may not be the first asset that comes to mind when looking for retirement income options, it can be an important bridge to retirement for those falling behind on their savings. This is mainly because real estate is such an inefficient market, and it’s possible to find amazing bargains with very high returns on investment. While there are other pros to consider, there’s also\u00a0 drawbacks to be cautious of, such as not being in a position to make a property purchase.<\/p>\n If you don’t have the cash to make such a large down payment, consider using your\u00a0IRA\u00a0funds.<\/p>\n<\/div>\n Most people are unaware that you have investment types available for retirement. The IRS allows different types of investments within a retirement account. An Iowa Self-Directed IRA gives you the opportunity and freedom to have options in investments for retirement. This plan gives you the option to invest in things like gold or real estate if you wish to do that.\u00a0<\/span><\/p>\n Here’s a look at some of the various retirement account options available:<\/span><\/p>\n A Self-Directed IRA allows you to invest in almost anything, including real estate. A real estate investment fund combines sources of capital from multiple investors for the purpose of making real estate investments. Almost all real estate investment funds use debt or leverage as part of their investment strategy, which could allow for greater purchasing power.<\/p>\n People who invest in real estate tend to do so because they want more control over their investments and don’t want to be limited by the options provided by traditional retirement accounts. One of the easiest ways to use your Iowa Self-Directed Real Estate IRA is by investing in apartment buildings, commercial property, retail space, raw land and more.\u00a0<\/span><\/p>\n These types of investments help provide an immediate income stream and can help you grow your portfolio at a faster rate than other traditional investment options (because they are often easier to sell off than stocks or bonds). As mentioned, you can also use leverage when purchasing non-recourse loans with your Iowa Self-Directed IRA which allows you to borrow money from another source such as a bank or credit union without having any personal liability on that loan.<\/span><\/p>\n With all of these benefits, it’s no wonder why many investors choose this type of retirement account over others. It’s important to note that while this is an option available to everyone, it may not always be the best investment for you. If you’re interested in investing in real estate, make sure to discuss it with your trusted financial advisor first<\/a>. They can give you all the information you need to proceed with the next steps.<\/span><\/p>\n There are many advantages to using funds to invest in real estate. A few notable ones:<\/p>\n It\u2019s no surprise that the cost of living in Iowa is low. While the <\/span>average home price is $178,000<\/span><\/a>, property taxes are relatively high with rates up to 1.5%. Property taxes do throw a wet blanket on returns from rental properties, in or out of Iowa Self-Directed Real Estate IRAs.<\/span><\/p>\n For your own personal owner-occupied residence in Iowa, you may be eligible for a <\/span>homestead tax credit of $4,850, <\/span><\/a>which is subtracted from your home\u2019s assessed value. This is typically worth $100-200 or so for the average homeowner in Iowa.<\/span><\/p>\n What’s more, you’ll need to help ensure you have adequate savings for unwelcome surprises. You never know when the AC might break, the roof could leak, or a pest problem could turn up.\u00a0 Finally, it’s worth noting that before you decide to include real estate in your investment plan, remember it is a lot of work being a landlord. Finding tenants, processing their applications, running background checks and property management is definitely time consuming. Be sure you have the time and will to take on such a project.<\/p>\n Rental real estate can be a good source of retirement income. If you’re interested in retirement and want to explore your options in Iowa, a Self-Directed IRA might be the best option for you. An Iowa Self-Directed IRA can help you manage your investments under your own control\u2014all while enjoying the tax benefits of a retirement account.<\/span><\/p>\n Are you interested in retiring in Iowa? Want to learn more about how to take advantage of all of the retirement capabilities you have? Then it\u2019s time to think about a Self-Directed IRA. If you’re looking for an experienced firm that can provide income planning with the utmost level of care and professionalism, look no further. Johnson Wealth and Income Management is here to help you every step of the way.<\/span><\/p>\n Whether you\u2019re living in or near Clear Lake, Iowa, Humboldt, Iowa or anywhere in the Midwest, our Fiduciary advisors are ready to help you take charge of your financial future. We\u2019re proud to say that <\/span>Clear Lake has been voted the #1 place to live in Iowa and Humboldt has been voted the #4 place to live in Iowa!<\/span><\/a><\/p>\nReal Estate & Retirement<\/strong><\/h4>\n
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Iowa Self-Directed IRA<\/b><\/h4>\n
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Real Estate IRA Investments<\/b><\/h4>\n
Benefits of Investing in a Real Estate Fund<\/strong><\/h4>\n
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Financial Considerations for Iowa Self-Directed IRAs<\/b><\/h4>\n
Retiring in Iowa With Johnson Wealth and Income Management<\/b><\/h4>\n