+4 votes
by (170 points)
Hello everybody!  I turned 59 and a half today!Hello everybody! I turned 59 and a half today! Anyone who has ever save a dollar in their retirement account knows what that means. No penalty for early withdrawal. Here is my situation. I have over 30 K in high interest savings account. I also have 40 K in a Roth IRA. I would like to begin building my multi million dollar empire by buying real-estate. Last year I took all my available cash and paid off my house. I was at 6% and my significant other didn't want to refinance so I took my savings and 7k out of my Roth (I was given 60 days to change my mind and was able to save that in 60 days. ) So my debt is what I pay for monthly. Should I just continue to save until I can buy that first piece of real-estate? should I take some of that out of my Roth? I would prefer not to finance any of this, as I believe I have made the banks rich enough already. Suggestions?  
Hello everybody!  I turned 59 and a half today!

3 Answers

+2 votes
by (2.4k points)
Do you have any real estate experience? Or is this the first?  
+1 vote
by (290 points)
My dad bought a rental property with his IRA. My memory is that the property was in the IRA. He didn't take cash out, but just moved it into the house. That might have been a misunderstanding on my part, and he actually did take the cash out first. But either way, he thought it was ok to use that money for a rental, and I see him as a guy with a pretty good understanding of finance and wealth
by (1.5k points)
There are companies out there that allow you to roll your IRA to them and they allow you to invest in non traditional investments like crypto and real estate. My recollection is that because it is such a special practice that the fees on the IRA were much higher. I think 2+%. I'm no CPA, and you'd want to consult with one on this, but real estate is so taxed advantaged that it probably isn't worth the effort and cost to jump through the hoops to put it into an IRA.  
0 votes
by (1.5k points)
Next to an HSA, Roth money is the most valuable money you have. Run the numbers by a CPA but you probably want to just wait to build up the cash needed for a down payment. You seem like a good saver so that will give you the time to find the right property. Take your time. Most of the money made in real estate is on the front end when you find a screaming deal.  
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