Re: lots of ways to skin trailers… - Posted by Marty (MO)
Posted by Marty (MO) on April 05, 2006 at 20:43:22:
my 401 is easy money once a year- very little flexibility. I’m not real worried about how fast my 401 grows, because I’m anticipating my roth and my investment properties having the clout. a regular 401- the money goes in tax free, grows, and is taxed when it comes out. you’re taxed on the growth (the whole tree!). a roth is taxed as it’s put in, grows, and remains untaxed- even if you pass it on to your kids. you’re not taxed on the whole tree, just the acorn. if you use a self-directed ira to buy trailers, those incredible 100% gains remain tax free. plus, you can pull the principal out any time you want to do more deals.
if you don’t necessarily need the cashflow (I’ll take it!), borrow against your traditional ira at 4%, move some of it into your roth and pull a deal that way, also.
reference jimmy napier’s “invest in debt” book and dick desich’s materials on roth ira’s to see where i’m coming from.