Retirement Planning: Resolve to Get Involved

Knowledge is power, control is key, and diversity is essential to successful retirement planning. Advanta IRA believes the more you understand your investments, the better your chances are of success in building a healthy retirement income.

The general rule here is to find what you know best—and invest.

If you are not familiar with self-directed IRAs, you may not understand that concept. If you own a retirement plan, you probably use a typical firm or custodian that invests your funds for you, you get monthly or quarterly statements letting you know how well (or not) your account fared. The catch is, these firms generally choose the more traditional assets that they sell, such as stocks, bonds, or mutual funds.

Self-directed plans are different in just one way: account owners get to choose their own investments. Now, self-directed plan owners can and do invest in traditional assets. However, alternative investments are favored by these individuals to build retirement wealth. Alternative investments include real estate, precious metals, private lending opportunities, crowdfunding, oil and gas options, LLCs, trusts, forex, foreign land…and the list literally goes on and on—and on. There are many options available that add diversity and income-earning potential to retirement portfolios. Depending on your knowledge and expertise in one area or another, your are sure to discover several assets you can invest in using a self-directed IRA.

As a self-directed retirement plan owner, find what you know best—and invest. Get it now? Good!

So, here’s your challenge: resolve to get involved this year in your retirement planning. Take control of your own retirement funds and investing decisions. Give yourself the ability to acquire assets that you understand and invest at a pace within terms and time limitations that make you the most comfortable. No need to depend on the gut-wrenching highs and lows of Wall Street. Flex your own muscles and draw on your own strengths. Pave your own road to success and drive your own car to get there. THAT is what self-direction is all about.

If you already self-direct, we challenge you to resolve to get even more involved. How? All of the tips below will help the beginner and expert investor, from the seasoned self-directed plan owner to those who are just beginning to learn the benefits these accounts offer.

Attend our complimentary seminars and webinars.

These events are designed to teach individuals about different alternative assets, investing trends as reported by experts, rules and regulations, and the different accounts that can be self-directed. Advanta IRA does not sell investments and we don’t give advice. But we can present you with pivotal information that will help you learn the benefits and risks of self-direction. There are many fundamental aspects covered in these sessions that empower investors with critical knowledge needed to succeed in their endeavors.

Network with other investors.

Join different investing clubs or meetings to network with like-minded individuals to share your successes and (cringe-worthy) failures. For instance, if you are interested in real estate, attend a local mixer to engage with others. Find a crowdfunding interest group to join. Connect on social media platforms with others who are trusted resources in your areas of interest.

Review the assets in your portfolio.

What did well for you last year? What didn’t? Make adjustments accordingly and without emotion. Drop what did not do well and consider adding more types of the options that did garner a good ROI for you.

Consult with experts.

Even though you get to choose your own assets that does not mean you can’t or shouldn’t draw on the advice of others. In fact, Advanta IRA encourages you do so. The more you know, the more you will understand what investments are a good fit for you. Performing due diligence is your responsibility as a self-directed account owner. Failing to fully vet all aspects of an investment, as well as the people involved, can result in your becoming a victim of fraud. Also, performing a prohibited transaction involving your IRA can cause heavy penalties, taxation, and even disqualification of your account. Industry experts can help you navigate the complexities of certain investments so your account remains in compliance with IRS standards.

Reevaluate your retirement plan.

Is it the best fit for you? Learn the differences in plans available for self-direction, which include traditional, Roth, SEP and SIMPLE IRAs, as well as individual 401(k) plans. Education and health savings plans can also be used in this manner.

Plan and budget to max out your yearly contribution limits.

Doing so may be impossible for some people, but every penny you can save counts. Don’t believe for a second that it does not. Understand the value of compound interest and how that works in your IRA.

Meet with your tax advisor.

Every year the rules of taxation are subject to change and these changes may very well affect your retirement account. Your accountant will know what these changes are, if any, and can guide you through the process of ensuring you reap potential benefits and that your IRA operates in good standing within IRS rules and regulations.

The above tips should become a part of your ongoing investing strategy. Don’t become a victim of today’s retirement crisis and find yourself in a position that doesn’t allow you to support yourself when you reach your golden years. You want to be able to retire, right? Everyone has retirement goals they want to reach. No one wants to have to work past a certain age.

In order to reach those goals, you must define what’s best for you, devise a plan, and have the determination to make it work. Advanta IRA believes that self-directed retirement plans are one vehicle that can help you achieve those desires. You simply have to resolve to get involved.

To learn more about self-directed retirement plans, contact us for a free consultation.

About Jack Callahan

Jack proudly earned his bachelor’s degree in finance and multinational business from Florida State University and his law degree from the University of Florida College of Law. He established Advanta IRA in 2003 and has steadily nurtured and grown the company and the team every year since. Prior to founding Advanta IRA, Jack delivered specialized counsel to real estate investors, small business owners, and real estate professionals on tax, legal and financial matters. As an industry expert, Jack is a frequent speaker on self-directed retirement plans. He is an accredited continuing education instructor for the Florida and Georgia Bar Associations, Florida and Georgia Real Estate Commissions, and The American Institute of Certified Public Accountants.