We all want it—enough money to finance our lives in our later years. That dream home where we can retreat to after a long day of playing golf, or whatever it is we do when we retire. We want to retire comfortably. We want to be worry free. We want to spend our golden years doing exactly what we want, when we want, and where we want. Well, if you self-direct a retirement plan and choose the investments in your IRA, you can help yourself realize that dream.
So, how are you going to make sure you reach those goals?
You have a retirement plan or maybe a 401(k) with your employer or an IRA of your own. You max your contribution limits
out as much as you can and trust that the account administrator or broker is choosing investments that deliver growth. Some of these plans even allow you to choose particular investments—but those choices are typically a small menu of limited assets within the realm of stocks, bonds, and mutual funds. Nevertheless, over the past few years, you’ve hopefully reaped the benefits of the stock market’s upward tick.
But what are you going to do now that the stock market’s stumbled?
Are you so heavily vested in stocks that you’re preparing to take a huge hit? Are you young enough for time to bridge that gap and allow your account to recover? If you’re near retirement age, you may have more than a little anxiety and sleepless nights hoping your IRA remains safe.
Whether those last few sentences describe you or not, make this the year you resolve to get involved in choosing the investments for your retirement plan. Chart your own course. Don’t leave everything to chance. Take control and refuse to spend another sleepless night wondering how the DOW’s going to perform at the opening bell.
How can you do this? With a self-directed IRA.
Self-directed plans allow you to choose the investments in your IRA.
Many of our clients come to us with well-established retirement accounts housed with the typical broker or bank. They aren’t exactly unhappy with those administrators—they want to maximize the earning potential of their funds. They want to diversify and choose alternative investments to enhance their retirement portfolios.
They want the ability to make their own investment choices based on things they know. They put their own knowledge to work to secure the retirement they deserve by taking an active role in making those choices. They’ve done their research and understand that they can get the control they want by self-directing their IRA or 401(k).
And, it’s easy enough to roll over or transfer some or all of your current retirement funds into a self-directed plan. In fact, transfers and roll overs from one IRA to another are more common than you think and don’t incur taxation or penalties for the transactions.
The alternative investment asset class is nearly limitless.
The only thing the IRS deems prohibited are life insurance contracts, antiques, and collectibles. Outside of that, the alternative investment opportunities are endless. Just invest in what you know! You can invest in all kinds of real estate. If private equity options are your thing, well, you can invest your retirement funds into that, too. Bitcoin is popular these days, as are startups. You can even invest in crops and timberland, alpaca farms, or foreign exchange. The point is…the choices are yours.
So, if you’re the kind of person who likes to start their new year off with resolutions, we urge you to resolve to get involved in your own retirement planning. Take control and put your future in your own hands. We believe that knowledge is power, control is key, and diversity is essential to building wealth for retirement. If you’d like to learn more about how you can reach your 2019 goals by choosing the assets in your IRA, contact us today.
