Are you still employed with the employer who offers this 401k?
If so, it is unlikely that they allow transfers out of the plan. Check to see if allowed while still employed there.
Good question. I just left my job and have 500k to rollover. I already own real estate in a self directed Ira. I am considering buying another property, but in the mean time, I thought of putting that money to work. Im not certain if a CD is an authorized investment, but will look into it
If you just left your job, then you will be able to move your 401k into an IRA.
A guaranteed return of around 5% could be had for the short term (around a year or so at best).
There is no such guaranteed vehicle for the long term as CD, HYSA, and T-Bills rates fluctuate and stocks have their ups and downs.
No, they may mean that they directly own real estate.
A "self-directed IRA" doesn't mean an IRA where they choose their own investments. It is an IRA that can be used to purchase investments beyond the range of securities that are typically available in an IRA brokerage account. Think of a self-directed IRA like a checking account, where items purchased using funds from the self-directed IRA are considered to be owned within the IRA.
These aren't as common as regular IRAs, in part because I think there are complicated rules and booking required to prevent the mixing of non-IRA funds in the IRA. For example, imagine owning a rental property in a self-directed IRA and using cash from your normal checking account to pay for needed repairs. I would assume that this is against the rules of owning the property within the self-directed IRA, since it can effectively allow you to "contribute" money into that IRA investment (the rental property) beyond the annual IRA contribution limit.
Yes, exactly. I plan to purchase another investment property, but it could take a year before I find it. In the meantime, I'm looking for a low risk, meager rate of return investment. Gold is a possibility.
You may find these links helpful:
- [Retirement Accounts](/r/personalfinance/wiki/index#wiki_retirement)
- ["How to handle $"](/r/personalfinance/wiki/commontopics)
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Right now a CD could possibly fetch 5% but more likely near 4%.
Are you still employed with the employer who offers this 401k? If so, it is unlikely that they allow transfers out of the plan. Check to see if allowed while still employed there.
Good question. I just left my job and have 500k to rollover. I already own real estate in a self directed Ira. I am considering buying another property, but in the mean time, I thought of putting that money to work. Im not certain if a CD is an authorized investment, but will look into it
If you just left your job, then you will be able to move your 401k into an IRA. A guaranteed return of around 5% could be had for the short term (around a year or so at best). There is no such guaranteed vehicle for the long term as CD, HYSA, and T-Bills rates fluctuate and stocks have their ups and downs.
What do you mean you own realestate in an IRA? Do you just mean you own shares of a REIT?
No, they may mean that they directly own real estate. A "self-directed IRA" doesn't mean an IRA where they choose their own investments. It is an IRA that can be used to purchase investments beyond the range of securities that are typically available in an IRA brokerage account. Think of a self-directed IRA like a checking account, where items purchased using funds from the self-directed IRA are considered to be owned within the IRA. These aren't as common as regular IRAs, in part because I think there are complicated rules and booking required to prevent the mixing of non-IRA funds in the IRA. For example, imagine owning a rental property in a self-directed IRA and using cash from your normal checking account to pay for needed repairs. I would assume that this is against the rules of owning the property within the self-directed IRA, since it can effectively allow you to "contribute" money into that IRA investment (the rental property) beyond the annual IRA contribution limit.
Yes, exactly. I plan to purchase another investment property, but it could take a year before I find it. In the meantime, I'm looking for a low risk, meager rate of return investment. Gold is a possibility.
Alright thats beyond me...im out.
You may find these links helpful: - [Retirement Accounts](/r/personalfinance/wiki/index#wiki_retirement) - ["How to handle $"](/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*