Investing in self-storage with your IRA or 401(k) can be a great investment option, especially if you’re a passive investor looking for a reliable investment option. In addition, self-storage facilities offer a unique investment opportunity that is historically less volatile than traditional stocks and bonds, making it a quality investment for those who want to build a long-term financial portfolio.
Why Self-Storage is a Good Investment Opportunity?
Self-storage is a growing industry, with the demand for storage space increasing yearly. People need extra storage space for various reasons, including downsizing, moving, and decluttering. This demand is not likely to go down anytime soon, making self-storage a reliable investment option for passive investors.
Unlike other real estate investments, self-storage facility investments have lower operating costs and maintenance expenses, making them easier to manage. Moreover, self-storage facilities do not require tenants to sign long-term leases, and there is less tenant turnover than in other rental properties.
Why Invest in Self-Storage with Your IRA or 401(k)?
Investing in self-storage with your IRA or 401(k) has several advantages for passive investors.
- Tax advantages: Investing in self-storage with your IRA or 401(k) can provide tax advantages. Any income generated from the investment will be tax-deferred or tax-free, depending on your account type.
- Diversification: Self-storage can provide diversification in your investment portfolio. It is a real estate investment with different risk factors than other real estate investments, such as residential or commercial properties. This can help you mitigate risk and has the potential to improve your overall returns.
- Consistent returns: Self-storage facilities can provide consistent returns. The demand for storage space is steady, and people are willing to pay a monthly fee. This can provide a reliable source of income for investors.
- Long-term appreciation: Self-storage facilities can appreciate over time. As the demand for storage space increases, the facility’s value can also increase. This can provide a long-term appreciation for investors.
Read More – Understanding The Major Market Trends in Self-Storage Investing
How you can invest in self-storage with your IRA or 401(k):
Investing in self-storage with your IRA or 401(k) is a great way to diversify your retirement portfolio and earn passive income. Here are some steps to consider:
- Open a self-directed IRA or Solo 401(k): To invest in alternative assets like self-storage, you’ll need a self-directed IRA or Solo 401(k). These accounts allow you to invest in a broader range of investments than traditional retirement accounts, such as stocks and bonds.
- Fund your account: Once you have your self-directed IRA or Solo 401(k) set up, you’ll need to fund it. You can do this by rolling over funds from an existing retirement account, making contributions, or combining both.
- Find a self-storage investment: Next, you’ll need to find a self-storage investment that meets your criteria. This may involve researching different self-storage facilities and assessing their financials and management.
- Conduct due diligence: Before making any investment, conduct thorough due diligence. This may involve reviewing financial statements, analyzing the facility’s occupancy rates, and assessing the competition in the area.
- Invest: You can directly invest in Storage Units Equity Income Fund for more benefits.
- Monitor your investment: As with any investment, monitoring your self-storage investment is essential. Keep track of occupancy rates, rental income, and expenses to ensure your investment performs as expected.
Conclusion
Investing in self-storage with your IRA or 401(k) is an intelligent way to build wealth for your future. Self-storage facilities offer a unique investment opportunity less volatile than traditional stocks and bonds, making it an ideal investment for passive investors. By establishing a self-directed IRA or 401(k) account and investing in self-storage, you can diversify your retirement portfolio, earn higher returns, and enjoy tax-deferred or tax-free growth.
Are you looking to invest in a self-storage fund with your retirement account? schedule a free strategy call with our director of investor relations.