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QUESTION:
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Can you roll an annuity into your own REIT to invest in this housing market? | I'm about 10 years from retirement. I have a low, six-figure annuity through my union. I live and work in California.
I want to buy a lake-front home in Texas as a speculative investment.
Can I create a trust (such as a real estate investment trust), roll my annuity over into the trust, and have the trust purchase the house as an investment?
I may rent the house as well, and that income would stay in the trust.
This won't work if I have to pay income tax and penalties on the existing annuity.
Any thoughts would be welcome. |  | asked by VieuxScott, 7/29/2008 |
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Categories:
Sell/Buy a Home, Housing, Rollover and Withdrawals, Late Stage Retirement, Annuities
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| ANSWERS: | | Answered by: SilverSurfer, 08/04/08
Overall Rating:  Be the first to rate it. | Hi VieuxScott,
You may be able to do something like this with a Self Directed IRA. A self directed IRA can invest in almost anything - including real estate - so long as there is no personal use of assets bought by the IRA.
http://en.wikipedia.org/wiki/Self_directed_ira
You should probably talk to a Financial Advisor about whether a self directed IRA can hold your annuity though.
NewRetirement offers some content on Financial Advisors and you can inquire to be contacted by one in this section:
http://www.newretirement.com/Services/Professional_Financial_Advisors.aspx
Good luck! Login to rate this answer: |
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