Were you thinking about how to use your retirement fund? Have you ever thought that there are over 7 billion dollars of pension money invested in private pension plans?
Most individuals just invest it automatically and don’t pay attention to the rate of return that the plans are generating. However, many of these pension funds are left with banks or brokers, earning less than 2% annually, and some even generate losses.
In fact, did you know that you have a way to take control and generate income?
You can use your retirement fund (IRA, 401K, RRSP) to purchase an investment property in Mexico.
First, you need to deregister your retirement fund account and register it as a self-directed IRA. It’s very simple and only takes 30-45 days to process.
Owning a self-directed IRA is the same concept as owning a business. Basically, the object is to make money for the IRA fund. Therefore you can use these funds to purchase property but you cannot personally use the property. All money generated goes back to the IRA and any expenses are paid by the IRA. In other words, if you or your family members stay in the property it is not generating income!
Furthermore, a great benefit to purchasing property through your self directed IRA or LLC is that when you sell the property you do not pay capital gains tax in Mexico or the USA.
There are 2 types of Self Directed IRA accounts:
A Self Directed IRA
Funds are rolled from your retirement fund into a self-directed IRA. You manage this account and you appoint an administrator to oversee the process and write the checks.
A Self Directed LLC
Funds are rolled from your retirement fund into a self directed LLC, the legal entity is the corporation. You have full control of the account and the check book. This is the least expensive option.
