QUESTION:

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
Categories: Rollover and Withdrawals, Annuities, Housing, Sell/Buy a Home, Late Stage Retirement
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!

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