Have you ever wondered how the European Union, Presidential policies, and High-Frequency Traders are connected? Well, even though they’re beyond your control, they can heavily influence the stock market, which isn’t great news for your retirement savings.
Most Americans probably have their retirement savings in a traditional IRA or 401(k) with companies like Vanguard or Fidelity. While these companies are trustworthy, the retirement plans tied to the stock market’s ups and downs can be pretty nerve-wracking. Watching your retirement funds shrink because of market changes, despite the reliability of your investment provider, can be really discouraging.
So, what can you do instead? One potential solution is to move your retirement funds away from Wall Street and into investments you’re more comfortable with. Maybe you know a lot about local real estate, have expertise in a specific industry, or believe in precious metals as a safe bet against economic uncertainty. For these options, a Self Directed IRA could be the answer.
A Self Directed IRA allows you to choose and invest in assets within your retirement portfolio as you see fit. There are two main types: Custodian and Checkbook Control. With a Custodian, they hold your funds and handle your investments, which can lead to high fees, lots of paperwork, and delays. The Checkbook Control model, on the other hand, lets you manage your funds directly through a checking account, cutting out the middleman and reducing fees, paperwork, and delays. That’s why the Checkbook Control model is quickly becoming a favorite in the self-directed investment world.
For self-employed folks, there’s a similar option called the Solo 401(k). It works like an IRA, offering Checkbook Control and varied investment choices. Plus, it allows for personal loans up to $50,000 and higher annual contributions. Even if you’re not fully self-employed, a little bit of self-employment income can qualify you for a Solo 401(k).
Whichever path you choose, remember that managing a self-directed IRA isn’t about picking a few stocks and forgetting them. It needs your active involvement to grow your funds and secure your future. The trick is to invest in areas you know well and manage the funds yourself. Essentially, you’re building your own financial success.
Broad Financial specializes in Self Directed IRAs and Solo 401(k)s with Checkbook Control and can be reached at 800.395.5200.