IRA's, 401k's, Keogh's, pension plan etc....most of us have them or in my case - have thought about getting them.  The latest news from a retirement planning standpoint is that there is an option out there to invest your plan in Real Estate.  Their are some caveats that follow most of the other tax defferral strategies, for example the property invested in must be used as an investment and cannot be used for personal/leisure.  It also gets a little technical in terms of funding the purchase.  The easiest way to invest is to fully fund your purchase with your retirement plan, keeping in mind that all related expenses/ maintenance would also need to be funded by the same means.  There are ways to use your retirement fund along with other traditional means of funding i.e. mortgage and/or personal cash, but it gets a little bit tricker in terms of what is taxable and what is not - the option is there but I would consult a local financial planner or attorney for detail. 

This is a particularly interesting topic when you consider that the baby boomer generation has an estimated $4.2 trillion dollars tied up in various forms of retirement plans.  That is an enormous amount of buying power and think of the opportunities that creates for our business as realtors!  Knowledge is key and educating our clients on this leveraging tool is a great idea! 

There are not alot of financial brokerages that entertain this type of business because after all it is taking money out of the portfolio's they get commission on and putting it into real estate.  I do know of one that is local here in Portsmouth, NH, Pensco Trust Company.  More information is one click away www.pensco.com. 

Has anyone had any experience with clients who have chosen this path as a means for funding a real estate investment venture?  I would love to hear.....