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 .