The Beardstown Business and Professional Women's Investment Club was founded in 1983.  It specialized in common sense investing advice.  About retirement planning, one of its members, Shirley Gross, a "Beardstown Lady" warned that, "Even with a pension and Social Security, people retiring in the future will not have enough.  Everyone will have to invest."

For the proverbial "Everyone," investing in real estate held in a retirement account, such as an individual retirement account (IRA), is a savvy way to prosper.

Any type of real estate held in a retirement account is free of taxes.  The rental income received from a small apartment building is tax free.  If flipping properties that are held in a retirement account, the profits are tax free, too.  If an investor chooses to finance properties by financing pirvate mortgage notes rather than actually owning real estate, those paper assets are tax free, too.  Holding real estate assets in a retirement account greatly increases the gains.

There are other benefits to investing in real estate held within a retirement account.

Has passive investing for the long term is the best way, retirement accounts add a level of risk management.  There can be no mortgage for real estate in a retirement account.  From that, the property will never be lost to foreclosure.  While foreclosure may seem to be an extreme event, it was relevant enough that millions lost their homes as a result during The Great Recession.  Holding real estate in a retirement account without a mortgage will ensure that never happens.  This provides the risk management function for the long term.

Retirement accounts provide other layers of security, too.  A retirement account is ideal for asset protection.  The owner of the real estate or other assets within the retirement account has a layer of legal protection against any number of unpleasant events that could greatly diminish their personal wealth.

The Beardstwon Ladies received a great deal of publicity regarding their investing approach and results.  In the book, "The Beeardstown Ladies' Stitch-in-Time Guide to Growing Your Nest Egg," this is detailed.  While their focus was mostly on the stock markets, much of their advice is applicable to real estate.  As real estate has created far more millionaires over the last two centuries than the stock market, it is much more rewarding as an investment. 

The advice given about retirement planning from the Beardstown Ladies is applicable for investing in real estate that is held in a retirement account.  The returns will higher and the tax burden will be lower.  That is good common sense, no matter what the asset class.