Q: How are the European Union, Presidential policies, and High Frequency Traders related to each other?
A: They are all beyond your control, yet they can significantly impact the stock market. This unpredictability can be problematic for the market and is certainly not ideal for your retirement savings.
If you’re like most Americans, your retirement savings are likely invested in a standard IRA or 401(k) managed by reliable companies such as Vanguard or Fidelity. These organizations are reputable, but the retirement plans they offer, which are linked to the stock market’s performance, leave much to be desired. The market’s fluctuations influenced by political decisions and trading practices can make monitoring your investment a stressful ordeal. The uncertainty of watching your retirement savings dwindle, regardless of how reputable the provider, can be disheartening.
So, what alternative do you have? One answer could be to redirect your retirement funds away from Wall Street commodities and towards assets you are personally familiar with. Perhaps you have an understanding of local real estate, expert knowledge about a certain industry, or trust in precious metals as a secure safety net against economic uncertainties. For all these scenarios, a resource exists that gives you the power to invest your retirement funds prudently – the Self Directed IRA.
A Self Directed IRA permits you to select the particular assets to include in your retirement portfolio and lets you invest in them as you wish. Two main forms of these platforms exist: Custodian and Checkbook Control. The former involves the custodian holding your retirement savings and conducting all investments and transactions, which usually results in high fees, cumbersome paperwork, and significant delays. The latter allows you to manage your funds through a checking account in a bank of your choice – eliminating middlemen, paperwork, delays, and extra fees. Hence, the Checkbook Control model is swiftly becoming the preferred format in the self-directed sector.
For self-employed individuals, a sister product called the Solo 401(k) is available. It operates similarly to the IRA, providing the advantages of Checkbook Control and alternatives for investments. Additionally, it offers the potential of a personal loan up to $50,000 and permits higher annual donations. You do not need to be entirely self-employed to qualify for a Solo 401(k); small amounts of self-employment income qualifies you for this platform.
Regardless of the path you select, it’s important to remember that managing your self-directed IRA is different from merely picking a few stocks and forgetting about it. It requires your active participation to grow your funds and assure your financial future. The key to success is that you are investing in areas you understand well and managing your funds personally. In essence, you’re crafting your own prosperity.
Broad Financial specializes in Self Directed IRAs and Solo 401(k)s with Checkbook Control and can be reached at 800.395.5200.
