10 Unexpected Investments You Can Make With Your Pension


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Got some money in your pension that is just sitting there? Put it to work.

Without a doubt, there are some incredible deals right now in real estate. You have to be careful to buy at the right price (not the price 3 years ago) and you have to do your due diligence, especially as it relates to rentals rates and vacancies. But some of the stories we’re hearing from our clients are amazing. One purchased a residential rental for $25,000 in Phoenix and started rented it for over $700 per month. Another bought a condo in Florida for $35,000 with a tenant already in place for $1,100 per month.

Both properties were purchased through pension plans.

Here are some investments that might work for your pension plan, if you set them up correctly:

  • Use your pension to fund a new company that you work in
  • Buy a franchise
  • Invest in a public offering such as a REIT
  • Buy a property to fix and flip
  • Buy a property to eventually be your retirement home
  • Lend money
  • Purchase a rental property
  • Invest with others in an apartment building
  • Start a business that will create passive income for you
  • Buy tax liens

Every single one of the above transactions is a legal transaction for a pension plan provided you follow the rules. And that’s what the real key is. You have to make sure you’ve got the right information, the right advisors helping you and you are clearly following what you can and can’t do.

We cover the tricks and traps of pension investing in Tax Free Real Estate Investing

Starting a business? Consider using your pension to fund it. Buying real estate? Your pension can help too!

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2 Comments

  1. Diane –

    What are your thoughts on the “infinite banking” concept?

    From what I have read, there is a way to set up a universal life insurance policy, and have that be your own bank.

    Here is what I have learned.

    1) You can add to the cash balance of the insurance policy, and have it grow at a yearly interest rate higher than a typical savings account or other wall street investments.

    2) The balance grows tax free.

    3) You can borrow against the balance tax free and treat the built up cash balance just like you would a mortage.

    It seems like you can’t lose with it, but would love your opinion on this.

    Thanks Diane!

  2. Tim Daunch says:

    Hi Diane. I’m re-reading my Tax-Free Real Estate Investments and need some help with the LLC post-formation paperwork. I went to reirallc.com for resources but that appears to be no more.

    I have a self-directed Roth set up with Equity Trust Company but they are not helping at all with setting this up – they state that they are only passive custodians and give no advice or assistance. They are also dissuading clients from “check writing” investments, similar to your suggestions. Any ideas?

    Thanks,

    Tim D.

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