Traditional IRAs have certain tax advantages during your working life, but as you reach retirement and begin drawing down the investment account you are taxed on the contributions and appreciation. Whereas with a Roth IRA you use after tax dollars to make contributions to the account and when you begin to take distributions into retirement, you are not taxed at all.

Real estate investing within an IRA can provide diversification to an overall retirement portfolio and this isn’t talked about too much because there aren’t many brokerage accounts able to provide custodial services for real estate investing. There advantages and disadvantages, for example you are able to collect income in your retirement portfolio, although you lose certain tax advantages such as being able to deduct depreciation or expenses from your tax return.

ALL INVESTMENTS INVOLVE RISK and your specific financial situation is different than others and it is your responsibility to research and/or speak to a financial professional to find what is best for your portfolio.


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