Episode #601
Get fast, affordable landlord insurance with Steadily:
link
BiggerPockets Money Listeners Get 10% Off the Book with Code “SDIRA10”:
link
Episode Show Notes: link
Join BiggerPockets for FREE 👇
link
Property Manager Finder:
link
Finance Friday: How the “Middle-Class Trap” Stops Your Early Retirement:
link
Connect with Kaaren:
link
Connect with Scott and Mindy:
Scott: link
Mindy: link
How can you use your retirement accounts to reach FIRE faster? We’ve talked a lot about the “middle-class trap”—having too much of your net worth trapped in your retirement accounts and home equity—and we may have the secret weapon to help you escape it. Not only that, this strategy allows you to keep more of what you earn, take control of your investments, and build a (relatively) passive real estate portfolio while you get closer and closer to FIRE.
Of course, we’re talking about self-directed IRAs and Kaaren Hall’s new book, "Self-Directed IRA Investing: A BiggerPockets Guide" (use code “SDIRA10” for 10% off)!
Never heard of them? Self-directed IRAs (SDIRAs) are retirement accounts that give you more control over what you invest in. So, instead of just stocks and bonds, you can use your retirement funds to buy rental properties, become a passive private money lender, and invest in real estate syndications. These investments can often get higher returns than stock market averages, helping you reach your retirement goals faster!
So, how do you use it to escape the middle-class trap? Today, Kaaren shares some of the often overlooked strategies to withdraw early from your self-directed IRA so you can FIRE in your forties or fifties instead of waiting until your sixties!
00:00 Intro
01:23 Self-Directed IRAs Explained
05:49 Buy Real Estate with Retirement Accounts!
10:37 Opening a Self-Directed IRA
13:55 Escaping the Middle-Class Trap
17:41 Real Estate IRA Rules
20:52 Best Alternative Investments
23:56 401(k) vs. IRA and Minimum Distributions
27:57 Withdraw from Your IRA for FIRE!
34:49 Self-Directed HSAs! (Timestamp)
36:59 When to Use a Self-Directed IRA
41:48 403(b)s and TSPs
43:20 BIG Changes!
48:20 Grab the Book!