Tax Lien Certificates and Tax Deeds Investing Using Your IRA

Certainly, you can make money investing in tax lien certificates and tax deeds but even better is that you can defer the tax payable on your profits!

One of the most popular reasons that investors start putting their money into tax lien certificates and tax deeds is so that they can amass a nice nest egg that will finance their retirement in comfort. Don't you want to enjoy your golden years without having to feel uneasy about every penny?

Using an IRA to Fund Tax Lien and Tax Deed Investments

If you have a self-directed IRA tax-deferred retirement account presently, you have the perfect instrument to fund your tax lien certificate and tax deed investing. If you don't have an Retirement plan, now may be the ideal time to set one up. Remember, it must be self-directed and it is advantageous to open a line of credit against the account so that you can easily get hold of the funds where and when you need it to invest in tax certificates.

If you've done any homework into tax lien certificate and tax deed investing, you know there is much profits to be made. You also know that this type of investment is both sure and conservative - as long as you do the analysis. Chances are you've discovered that you can use as little or as much capital as you desire - there are some tax lien certificates you can purchase for less than $100! Perhaps you've also learned that the rate of return on your funds can be as high as 50 percent, although 14 to 36 percent interest rates are more common - positively, though, this is significantly more than you could ever hope to earn with a CD or other type of "safe" investing.

But I'll bet that you didn't know how easy it is to use this investment to increase your IRA funds while deferring the taxes due on your gains. This is thanks to the ERIS Act of 1974, which permits the account holder to self-direct of their funds. Essentially, you can take your retirement nest egg and invest it in anything from stocks and bonds to rental homes, real estate, and tax lien and tax deed purchases.

Many types of retirement plan accounts permit you to open a line of credit against the funds. This gives you a checkbook that will draw the capital from your balance - ideal for using at tax-defaulted real estate auctions that take place in person or online.

Inquire with your current Retirement plan administrator to see if your account can be modified into a self-directed fund and if a line of credit is obtainable. If not, think about moving your account to a business that does offer the tools you want to make your retirement funding through tax lien certificate and tax deed investing easier and more lucrative.

Using your Self-funded retirement plan to bankroll your tax lien and deed investments is a win-win situation.

About the Author

Ted Thomas is America's Tax Lien Certificate and Tax Deed Authority. He has helped thousands of students graduate from his investment courses and make amazing profits. Visit Ted's website and receive your FREE copy of the 57-page Start Up Guide now at http://www.tedthomas.com.