Retire Rich: Why Buying Real Estate with an IRA Is a Game Changer with Jason DeBono

Retirement planning is a topic that demands attention and strategy. In this podcast episode, we sit down with Jason DeBono, President of NuView Trust Company, to explore the world of Individual Retirement Accounts (IRAs) and how they can be leveraged to unlock the full potential of real estate investments. Discover the various types of IRAs, the unique advantages of self-directed IRAs, and the game-changing tax benefits that come with holding properties within an IRA. Join us on this journey to retire rich and make the most of your hard-earned money!

What is an IRA and Its Different Types

Understanding the foundation of Individual Retirement Accounts (IRAs) is essential to grasp their potential benefits. Congress created IRAs in the 1970s to provide individuals with a means to save for retirement outside of 401(k) plans. Traditional IRAs have been popular for their tax-deferred status, but self-directed IRAs bring a new level of flexibility. Self-directed IRAs offer a broader range of investment options, including real estate, syndications, and private loans. This flexibility empowers investors to diversify their portfolios and potentially achieve higher returns while enjoying unique tax advantages.

What Happens to Properties Declared in an IRA

When investors choose to buy real estate within their IRAs, they encounter unique dynamics in terms of dividends and taxes. In this podcast conversation, Jason DeBono sheds light on how dividends within an IRA are reinvested, similar to stocks. Holding real estate within an IRA means all income generated and expenses incurred flow in and out of the account. This raises questions about the tax implications and potential long-term savings. Understanding the tax implications of holding rental properties within an IRA is vital for making informed investment decisions.

Compelling Reasons to Buy Real Estate Using IRA

Choosing to buy real estate through an IRA versus holding it personally involves considering individual circumstances and tax implications. In this podcast episode, Jason DeBono shares valuable insights into the factors influencing this decision. When comparing investments, investors must assess the potential returns of the real estate investment against the performance of the existing IRA. Short-term investments are often better suited for IRAs due to higher capital gains tax rates. On the other hand, long-term holdings in personal accounts allow for depreciation, write-offs, and potential long-term capital gains benefits. Balancing tax efficiency with long-term wealth building is key to optimizing retirement plans.

Pay Taxes Now? or Pay it Later? Which is Much Better?

The eternal debate between paying taxes now or deferring them is a significant consideration in retirement planning. Jason DeBono delves into the mindset of individuals who prefer to defer taxes and the increasing popularity of Roth contributions. Understanding the long-term benefits of paying taxes now and allowing investments to grow tax-free is essential. Tax strategies, such as utilizing Roth IRAs and deferred sales trusts, can help minimize tax obligations while maximizing investment opportunities. Striking the right balance between tax efficiency and wealth accumulation is crucial to secure a financially abundant retirement.

Who is Jason DeBono?

Jason DeBono, President of NuView Trust Company, brings 17 years of expertise in the self-directed IRA industry. As a subject matter expert in tax-advantaged investing, Jason is frequently invited to speak at national events and podcasts. He has provided continuing education to professionals in fields such as accounting, law, and real estate. Beyond his professional achievements, Jason is also the Co-founder and Chairman of Chair the Love, a charitable organization focused on providing mobility services. Based in Central Florida, Jason resides with his family, driving positive changes in the financial landscape and the community.

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