REI WEALTH MONTHLY Issue 33 | Page 27

TIPS FOR SUCCESS MICHAEL POGGI
Don’ t be Afraid to Change Directions When Necessary ­It is imperative that we are not afraid to change directions when conditions change. I have been a Real Estate Investor for many years, and have seen the ups and downs of the market. I have always watched the market conditions to determine what strategies make sense.
It is not wise to hold on to a strategy when the numbers and the market conditions no longer align. Sometimes it is tempting to jump into a real estate investing strategy that no longer yields great returns due to the market when in reality the time for that strategy has already passed. For example, at the top of the market is not the best time to purchase rental properties.
There are strategies that fit every type of market. Our team researches and determines the best strategies to invest in and changes directions when market conditions deem necessary.
Grow Your Wealth Tax Free By Investing in Real Estate using a Self­Directed IRA­ One strategy that has allowed me to gain tremendous wealth has been investing in Real Estate using a Self ­Directed IRA.
An IRA, An Individual Retirement Account is a personal savings plan that allows you to set aside funds for your retirement. Investments made within these plans grow in either a tax­deferred or tax­free environment.
A tax­deferred account is one that is funded with pre­tax dollars which means in most cases that you get a deduction for your contributions. When distributions are taken from the account those funds are taxed. Traditional, SEP, and SIMPLE plans are referred to as tax­deferred accounts.
By contrast a tax­free account is one that is funded with after tax dollars, which means that you do not receive a deduction for contributions. When distributions are taken, there are no taxes incurred in a tax­free account. The Roth IRA and the Coverdell Education Plan are referred to as tax­free accounts.
The Self­directed IRA is a well­kept secret. You might not be aware that it is possible to invest in non­traditional investments such as real estate, mortgages, tax liens, mobile homes and other investments in an IRA. A truly self­directed IRA will enable you to use your investment knowledge and expertise to prepare for your retirement. A self­directed IRA allows one to make their own investment decisions from a wide range of acceptable investments.