How to take the profit you’ve earned as a Realtor and invest it.
As a real estate agent and independent contractor, you won’t have anybody putting money in a 401k for you—it will be up to you to do it. What can you do to optimize your income and keep growing your wealth? Here are three options:
1. Real estate is a great investment opportunity because you’re already familiar with it. We all know that on average, real estate goes up in value by 4% every year. If you invest $100,000 into real estate today, it’ll be worth $148,000 in 10 years, and that’s not even the cash flow you’d get from it if it were a rental property. There are a ton of opportunities in real estate, and as Realtors, we know the benefits of this avenue.
2. Investing in a tax-deferred option involves using an IRA, a SEP IRA, or a 401k. Putting money in these will reduce your tax outlay for the year. Talk to your accountant about the limitations on this.
3. You can also invest your money into a tax-free Roth IRA. This involves paying the taxes upfront and having the money accumulate for years. You get to pull all of it out years later without having to pay taxes on it.
There are lots of opportunities for you if you have profit and are a business owner (like a real estate agent). Talk to your accountant and find out what is best for you. Invest your money now so you can enjoy an awesome life later! If you have any questions about this, call or email me anytime.