If you have a 401(k), you likely feel fortunate to have a company-sponsored retirement account since so many workers don’t have access to one. However, just because you take the company match and contribute to a 401(k) doesn’t mean all of your retirement dollars need to stay in an underperforming retirement savings vehicle. If you suspect you have a lousy 401(k), consider self-directed IRA services. You can roll money from a 401(k) into a self-directed IRA when you are ready to experience investment returns beyond the de-facto retirement plan that the average person relies on. More ambitious and competitive investors crave ultimate control over their retirement choices.
Do you have limited investment options?
One sign that you have a lousy 401(k) is if you have a limited menu of mutual funds from which to choose. Many 401(k) plans include target-date that grow more conservative as you get closer to your target retirement age. However, the returns are often disappointing for ambitious and hard-working investors used to seeing results. Some critics point out the mutual funds and target-date funds charge expensive fees, which slowly eats away at potential earnings.
Is your money with an old 401(k)?
If you left your retirement money with your old company, you have several options. One option is to roll the money into a Rollover IRA. Depending on the plan administrator, you could roll the money into your new company’s 401(k) if one is available. However, seeking self-directed IRA services could help you avoid getting stuck with another underperforming 401(k).
Do you receive a matching contribution?
If you receive a matching contribution from your employer, continue to put in the minimum dollar amount into your 401(k) in order to receive the match. An established and reputable company that provides self-directed IRA services can help you figure out when and how to move money into a self-directed IRA with checkbook control. While you have limited options inside a 401(k), the options inside a self-directed account include real estate, small business stock, gold, silver and other precious metals.
Are you running out of time?
If you are a baby boomer in your 50s and 60s, you likely feel frustrated about the fact that retirement is closing in on you. With the rental market booming now, you can finally get a piece of the action by using a self-directed IRA to buy real estate. If you aren’t clear on how it works, it is fortunately fairly simple. An IRA custodian holds the investment in the company’s name. When buying real estate, you can use an IRA limited liability company or LLC as the place to hold the retirement assets. If you just keep your money in a 401(k), the annual returns could prove disappointing.
Have you thought about asset protection?
Many people feel tempted to liquidate a 401(k) or take out 401(k) loans. When you take money out of the retirement account, you lose much of the built-in protection since retirement accounts receive protection from creditors. With a self-directed IRA, you receive the same kind of protection from having the assets seized by the IRS or creditors. Even if you declare bankruptcy or deal with lawsuits, the self-directed IRA is off-limits. Many investors feel less tempted to take money out of a self-directed IRA as opposed to a traditional 401(k).
When it comes to investing in real estate and alterative investments, take charge of your future with the best guidance. At New Standard IRA, we provide our clients with the most up-to-date information about alternative investing for a better retirement future. We want our clients to enjoy the most competitive ROI (return on investment) by handling the legal work so they meet IRS guidelines and rules. Don’t put up with a lousy 401(k) when you don’t have to. For more information on self-directed IRA services, please contact us.