What is Real Estate

Writen by Ken Gronski

A new trend to consider for investors thinking about their retirement funds involves the same idea that many people are utilizing for today's wealth-building mechanisms; real estate.

Most banks and brokerage companies limit your choices for retirement investment to certificates of deposit, stocks, mutual funds, annuities, and similar financial instruments. But Section 408 of the Internal Revenue Code permits individuals to purchase land and other real estate with funds held in many common forms of IRAs, including a traditional IRA, a Roth IRA, and a Simplified Employee Pension plan, or SEP-IRA.

While some restrictions apply to properties and their uses, a person who intends to utilize the property primarily as an investment tool for retirement can derive the benefits of appreciative land values to enhance their nest eggs. Also, the ability to locate and lock into a property that one may decide to build a retirement home on may be just what some investors are looking for with their individual plan.

"This form of investment tool may be intriguing for some," said Ken Gronski, Recreational Land Specialist for Wisconsin Waterfront Properties. "A person may be considering a waterfront land purchase now but will not build until retirement. Laws maintain that the individual can take the land out of the plan as a disbursement after age 59 ½ just as if you were to begin drawing money out of a traditional plan."

There are restrictions of qualifying property types and their uses; the best way for someone interested in exploring the feasibility of this investment option is to talk with a qualified retirement fund planner as well as a real estate professional. As some investors today stay away from the stock market for their ongoing ventures, they can also consider the same options that provide a more stable growth in their individual retirement plans as well.

"A plan of this nature could allow someone in the right situation to find an alternative financing option with definite tax advantages to locating the land for their retirement home," Gronski added. "The lake property you envision now may not be as readily available at the time you are ending your working career, but if you find it now at today's prices and allow it to grow in value tucked safely in your plan it will be there when you are ready to retire."

For additional information on properties and potential retirement options with real estate, contact Ken Gronski or visit www.wiswaters.com

About Wisconsin Waterfront Properties: Ken Gronski of Wisconsin Waterfront Properties is a Recreational Land Specialist for Wisconsin Lakes Realty, Inc. Wisconsin Waterfront Properties specializes in guaranteed build-able recreational land and acreage throughout Wisconsin and Michigan's Upper Peninsula.

Contact:

Ken Gronski, Recreational Land Specialist Wisconsin Waterfront Properties 715-421-9133 http://www.wiswaters.com