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Sorry - that should read IRA! - Darn spell check!

I believe the rules are that, if you sell it, the OR A gets the proceeds, no different than selling a mutual fund within an IT A. If you move into it, you would be cashing it out, like a distribution and taxes would be due. That's how I understand it.

Thanks jw72! Do you use it for Real Estate?

Good to hear. I shared my idea of transferring a portion of my OR A from my FA to a self directed account at another firm. To my surprise he said that "it sounds like a logical move, Just be careful to understand the costs". Do you mind sharing which company you are using to hold the self...

I'm contemplating using a Self Directed IRA to buy a rental property which will cash flow in the form of dividends to fund my retirement. Has anyone in the forum done this and, if so, can you share whether it's working out for you? I hear that custodian costs can run high with self directed...

Good points on the management. One of my motivations was to further diversify away from the markets. I'm not at all comfortable with the condition of our economy, debt, politicians, etc...and real estate is one way to hedge inflation outside of the market.

So, I've been doing some research on how to minimize my exposure to the stock/bond/fixed income markets and possibly increase my real estate rentals using IRA money. I came across the "Self Directed IRA" and was wondering if it's legitimate and where any of the good folks on this board have any...

I believe your answer lies in the duration of the fund. If a fund has a duration of say five years for example and interest rates increase by 1%, the nav of the fund should drop by duration x percent increase (5x1) or 5%.

I would be careful advertising your 40 day vacation usage if you deduct expenses as an investment property. I believe you might be limited to just a few weeks personal use per year. Sent from my SM-G920V using Early Retirement Forum mobile app

Ah ha! And that's why I ask the forum. Good points. I'll have to run it by my tax guy. Thanks.

I need help in deciding whether one mortgage payoff is more advantageous over another: I have two mortgages, each for the same amount. One is on a primary residence and the other is on an investment property (rental). I expect to come into enough cash to pay one of them off but I'm unsure as to...

Amen I say, Amen! Thank you, just what I was thinking but was unable to put into words!

OP here. Several folks questioned why I asked the question the way I did (as a percentage of gross income) so I'll try to clarify. My rationale is (and I may be all spun around the axel on this since I'm not yet retired) that my portfolio at the time of retirement will throw off about 80k of...

I should have mentioned that we do not anticipate a mortgage in retirement... EMI GUY

Hello everyone. I don't post often, I'm more of a reader, I guess. I visit often and find this forum to be among the best I've found. So here goes. DW and I are about four years from retirement, both will be 60. As we prepare, building budget scenarios and saving all we can, we're looking at our...

Great post! I own a four-plex that will be one of the pillars of my retirement plan. I've owned it for ten years now and will be paying it off in the next few years, after I retire and I sell my current principal residence. Once that happens, the rental income will represent about 25% of my...

Lots of good thoughts, thanks! I think with four or so years to go before we retire, we will probably just keep maintaining/ enjoying both places then make the decision when our actual retirement date is closer. On the one hand, I would like to reduce the cost of keeping two places now but on...

I've been a member for a few years but I admit that I read a lot more than I post. With just shy of four years before retirement, my DW and I are starting to plan where we will live once we pull the plug on work. We've always thought that we would sell the primary residence and live in a lake...

I believe Zvi Bodie, a widely published BU professor of economics, has a similar investment strategy suggestion (to invest in treasuries) for what he calls " a worry free retirement".

So it's a few years since posting this item and I am happy to say that I took the job, am doing the travel and have never been happier at work! Thanks you all for the input and encouragement!

I just needed to jump in cause this hit a nerve, sort of. DW and I just recently sold our first (and probably last) Mercedes. It was an amazing experience driving the car not due to the car's fine workmanship and quality, which was great, but due to the insane stereotype that (unbeknown to us)...

Reminds me of an old quote from then CEO of Digital Equipment Corporation, Ken Olsen. INTERVIEWER: "So, Mr. Olsen, how many people work at DEC" ? Ken Olsen: "About half of them".

Hello everyone. I'm reading a book by Harry S. Dent, Jr. named: The Great Crash Ahead (Free Press, 2011). In it, the author makes a compelling case regarding the baby boom generation demographic and how it will naturally cause upheaval in the stock market as the baby boomers shift from spenders...

How does income tax work if your home office is located in a "no income tax" state but your work travel takes you to various, possibly income taxable locations?

Update: I accepted the job and start on Monday. Travel is suppose to be 30% but I think it will be a bit more. Travel is to warm spots on both east and west coasts of the U.S. so I am looking forward to much shorter winters. DW is very supportive and so we decided to give it a try since I am...