Always Had That Dream But Could Never Find A Way? Rollover your current IRA or 401K to a self-directed plan and start making your Costa Rica dream happen!
I am sure you have read many articles about all the great things to do in Costa Rica, from surfing the rain forests and zip lining to slathering warm volcanic mud all over your body and the great lifestyle one can experience here in Costa Rica. I am sure you have also read many articles telling you what a great investment it is to own Costa Rica real estate.
Well this article is about an option to achieve that dream that many do not know about. It is not a far reached hair brain crazy idea. Best of all it is LEGAL as I have utilized it as well. So let’s get started shall we?
Many people think about this dream all the time, especially after vacationing here in Costa Rica and for most it may just be a dream. But in reality dreams do come true if you use your wits and actually investigate all your options.
Now you might be saying: “I don’t have $250,000 cash in the bank to buy my piece of paradise”. Well if you are just looking at your bank account maybe you don’t. But I want to offer you another option that is available and something to consider.
Ok say you’re in your mid forties or even early fifties, you may be starting to thinking about the retirement years as time dose move fast. You have been working a good job for many years and been proactive and diligently putting away some earnings every pay check in to an Individual Retirement Account (IRA) or a company sponsored 401K plan.
Sometime you may be looking at your statement and saying “Wow I have a pretty nice nest egg in there, too bad I cannot touch it until I hit fifty nine and half years of age, or I get killed by taxes.”
Personally I know I was in the same exact boat, good savings, but basically had my hands tied and I still have over 6 years before I can touch it.
Many people had put a good portion of their salary into these plans ever since they were introduced back in the late 1970’s, and a good number of people saw their retirement saving go right down the drain when the great recession hit on 2007-2008, as it is called by politicians and economist.
I know I am a prime example of that. Now that the stock markets are doing better, lots of people are starting to see their investments back and many are actually making profits again, well at least on paper that is.
4 years ago I was in the US attending the National Association of Realtors (NAR) Convention and came across a company offering a true Self Directed IRA, so I spent some time listening and got a lot of information from them and did my own research.
There are a few TRULY Self Directed Fiduciary Custodian companies that offer this service. The way it works is pretty easy; you contact the company that you feel most comfortable with, Just do a search on the internet for; real estate self-directed IRA; and find the company that works best for you.
The process is actually very easy, basically you Rollover your current IRA or 401K to a self-directed plan and company that acts as the custodian of your retirement plan. You are not cashing it in; it is a Rollover, than you direct that company to purchase the real estate asset investment you want.
Just like calling one of the major investment firms, I won’t name any here and telling them you want to buy stock in XYZ Corporation or a certain mutual fund. It really is that simple. I myself actually own real estate utilizing this same process.
I have been happy to offer this option to clients that wanted to invest in Costa Rica real estate but did not have the cash available. They utilized this process to purchase that retirement dream or investment property now, without pulling the funds and getting hit with all the taxes and penalties.
So if you happen to be one of those lucky people that is watching their 401K and/or IRA coming back, it may be the time to investigate utilizing those funds to purchase that dream investment of owning in the tropics. It is not as hard as you think. Just do your homework.
Of course there are rules and regulation that you have to abide by to make it all legal with the US government and of course the beloved “pun intended” IRS. But it is an easy way to invest and have something for the future as you never know when the stock market is going to crash again and wipe out what you have just regained.
I know this article leans more towards people from the United States; however there are many people that may not be US citizens but do work for US based companies and are offered retirement savings plans through their employer. So I recommend checking with your plan administrator, you have nothing to lose to investigate this option and gain would be a great Costa Rica experience.
Always Had That Dream But Could Never Find A Way? Rollover your current IRA or 401K to a self-directed plan and start making your Costa Rica dream happen!
Article/Property ID Number 5545
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Andrew Makarik
to@welovecostarica.comAndrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.
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