Amateur investors are increasingly
tapping into their retirement accounts to buy homes and take advantage
of the hotter housing market, CNNMoney reports.
"We're seeing many people cash out 401(k)s or IRAs because they want
to take advantage of the market," Sean Galaris with LM Funding, a
financial services firm based in New York and Miami, told CNNMoney.
"This new scenario involves people losing significant personal funds
since they are financing real estate through retirement accounts,
savings, and life insurance."
Tax attorney Adam Bergman with IRA Financial Group in New York says
that he gets many calls each day from clients who are looking to invest
retirement funds in the housing market.
"Our average client has retirement accounts of about $150,000 and is
looking to buy one or two properties," Bergman says. "After 2008, they
didn't trust Wall Street. They wanted hard assets."...
Source: “Amateur investors tap 401(k)s to buy homes,” CNNMoney (May 20, 2013)
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