If you have a 401K you can convert it into a SEP IRA which is a self-employed pension plan with benefits that exceed those offered through the 40lK.  There is a criterion to follow, such as being self-employed.  However, you can go beyond saving for retirement, you can also use you SEP IRA to invest in real estate. Interested investors can look into Real Estate Investment Trusts (REIT) or Exchange Traded Funds (ETF) which are options for investing in real estate found in the SEP IRA pension plan. A REIT is a collection of different types of real estate investments contained in a package called a portfolio. A REIT is regulated by the government so that 90 percent of the profit in the form of dividends must return to the investor of the SEP IRA account. The yield is high and tax-free as long as it remains within the SEP IRA account. These plans may in fact become the best options for real estate investors since they diversify investments. Therefore if a portion of the real … [Read more...]

The American Dream is to work hard all your life and put away for your retirement. With these uncertain times it is really important that we do so. Many small time business owners, or people working for companies that provide a retirement plan, use the 401K as their primary retirement savings plan. Employers contribute a portion of the employee contribution to the 401K plan and of course small business owners who get the 401K plan for themselves will be responsible for the full amount. The advantage to this type of retirement plan is that the savings accumulate until retirement, while taxes are deferred until retirement. However, there are other ways of investing that will give you a good yield. If you are a small business owner, freelancer, a private contractor, or an individual who works for a company that provides the 40lK you may qualify for a SEP-IRA account. Starting a SEP IRA retirement plan The SEP IRA is gaining in popularity over the 401K The SEP is much … [Read more...]