Using Your IRA or 401(k) to Purchase a Villa at Osa Mountain Village in the Southern Pacific Zone of Costa Rica

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) July 24, 2011 -- Use Your IRA or 401(k) to Purchase A Villa:

Did you know that the government allows you to invest in many things that are not traditional investment vehicles within your retirement account?
Are you aware that you can buy and hold real estate, make loans to people or companies, etc. to earn money for your retirement account?

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Using Your IRA or 401(k) to Purchase a Villa at Osa Mountain Village in the Southern Pacific Zone of Costa Rica

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http://osamountainadventures.com/use-your-ira-or-401k-to-purchase-a-villa/

Traditional institutions like Merrill Lynch, Smith Barney and others don’t tell you about these options because they are set up to deal in stocks, bonds, mutual funds and other more traditional holdings and they collect commissions buying and selling these financial instruments for you. Most of these big companies that you have heard the names of since you were a child don’t even offer the type of account that allows you to invest in these other types of income generating assets and they would like to keep you uninformed so that you will keep buying and selling stocks, bonds and mutual funds with them.
There is an alternative though. It’s called a self-directed retirement account and there are several companies in the US that offer these types of accounts. Self-directed retirement accounts are nothing new and the it’s nothing new that the government allows you to invest in other things besides stocks, bonds and mutual funds.

Companies that offer self directed accounts make there money in a different way. They charge flat fees for buying and selling assets for you and for holding your assets that you purchase, usually on a quarterly basis. They also charge for miscellaneous processing services like wire transfers, overnight delivery, cashiers checks, etc. Most of these companies will have a maximum per year that they charge for holding your assets.
The great thing about self-directed plans is that you have many more options than you do if you have a traditional type account. In fact, you can even partner with your retirement plan if you want to. For instance, let’s say you want to buy a villa at Osa Mountain Village for $220,000 and to keep things simple you only have $110,000 available cash in your bank account but you have another $110,000 in your retirement account. You can become a 50/50 partner with your IRA or 401(k) and purchase the villa using the funds from both accounts.

Now let’s assume that you rent out that villa for $1,200 per month and your expenses come to $200 per month, leaving you with a net profit of $1,000 per month. You must then split that profit with your retirement account putting $500 per month back into the retirement account and the other $500 per month is yours to use in any way that you want.
There are some simple rules that you must abide by in a scenario like this which can be explained in detail by a representative from a company that handles self-directed plans, but the rules are easy to follow and the benefits derived from this type of investing can be far reaching and help you reach your retirement goals much more quickly as well as help you acquire assets that you might not be able to afford otherwise.

One last thing to be aware of is that if you ask your traditional IRA or 401(k) facilitator about buying these other types of assets they may tell you that you can buy the asset by taking a loan out against your retirement on which you will pay interest. You would essentially be borrowing from yourself but paying someone else the interest. You don’t need to be a brain surgeon to see how ridiculous that is.
If you have questions about this article please feel free to contact me and I will be happy to respond.

Osa Mountain Village
The Most Amazing Community on the Planet

www.osamountainvillage.net
www.osamountainresort.com
www.osamountainvillagecostarica.com
www.osamountainadventures.com

More information can be found online at http://osamountainadventures.com/use-your-ira-or-401k-to-purchase-a-villa/

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