Well, it’s time to dust off that vision and act on it – because desirable overseas properties are being snapped up at incredible speeds by those desiring vacation homes or simply wishing to invest in hot real estate. This means that the charming condo you’ve had your eye on ever since you honeymooned in some slice of paradise may no longer be there by the time you retire. Or it will be so exorbitantly priced, it will be untouchable. So the time to buy is now.

Don’t let a lack of capital dissuade you from making that purchase. Thanks to specially structured retirement accounts called “self-directed IRAs,” you can use your retirement funds before you retire to buy your retirement home today. And to make the investment, you don’t have to take a distribution or pay taxes or penalties for using that money. While you can’t purchase a house that you will live in now, you can buy it, rent it out and funnel that money tax-deferred back into you IRA.

Sounds almost too good to be true, doesn’t it? But, surprisingly, such transactions have been possible with IRAs ever since 1974 when the Employee Retirement Income Security Act (ERISA) gave account holders the right to personally direct their retirement monies into investments of their choosing, including real estate. And because the investment is made on behalf of the retirement account (just like the IRA investing in stocks and bonds), the acquisition is made without triggering a taxable event.

Self-directed IRAs come with an important caveat: You are required by law to avoid any “self-dealing” transactions that create a conflict of interest between you (the account’s fiduciary) and the account itself.

In other words, every purchase/investment must be made to the exclusive benefit of the IRA. So the real estate you purchase with your retirement funds must be used for growing your retirement account.

The establishing of a self-directed IRA is an involved process, so you’ll want to work with an “account facilitator” who specializes in these unique account structures. Account facilitators give the IRA holder checkbook control of IRA funds, which means you can literally write a check on the spot to make a purchase or investment. By contrast, traditional “IRA custodians” allow foreign investments but charge a percentage fee for each transaction and then must coordinate the transaction.

According to David Nilssen, president and CEO of account facilitation company Guidant Financial Group, increasing numbers of people are discovering the joys of self-directed IRAs. “The majority of our clients are Baby Boomers who are now taking a much closer look at their retirement funds and are eager to personally make those accounts grow faster,” he says. “Buying one’s retirement home as an IRA investment is particularly popular with our clients. And in light of today’s housing market woes, foreign real estate investments are growing hotter by the day.”

The buying of a retirement home combined with investing in high-demand foreign property is an ideal combination. Investors might call it a match made in heaven. And someday – sitting on the front porch of your exotic Belize bungalow or sprawling Malaysian plantation - you might call it a match made in paradise!

To learn more about self-directed IRAs or foreign investments, contact Guidant Financial Group at 888.472.4455 or register for more information at www.guidantfinancial.com.