Self-Directing Your Way to a Solid Retirement Savings

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The results are in for the 2016 Retirement Confidence Survey, and the evidence reveals that although saving for retirement has become more of a priority for investors across the country, the majority of Americans have not yet taken the steps they need to start saving for retirement. As summarized by the Employee Benefit Research Institute:

“The 26th wave of the Retirement Confidence Survey (RCS)…finds that American workers’confidence in their ability to afford a comfortable retirement has maintained its increase after the record lows experienced between 2009 and 2013…While workers and/or their spouses who have a retirement plan have much larger savings and are also more likely to have taken steps to prepare for retirement, in the aggregate, only a minority of all workers appear to be taking basic steps needed to prepare for retirement” (Full survey brief here).

Most retirement plans are held through banks and brokerage houses, which limit available assets to those within the securities market. This is largely due to the fact that employees of these institutions receive commission from buying and selling securities. With an every-growing wariness about the fickle nature of the stock market, it’s no surprise that many investors don’t know where to turn to start building their retirement savings.

Because of the restrictions placed on IRA investments by banks and brokerage houses, many Americans don’t realize that IRAs can legally invest in almost any asset the account holder desires (minus life insurance and collectibles). Retirement investors can realize more freedom and control over their savings by opening an account with a self-directed IRA provider, where they can then invest in the asset markets that they may already have in-depth knowledge of and experience with.

Self-directed IRAs are one of the fastest growing sectors in the retirement industry. These accounts keep all the tax-benefits of “regular” retirement plans (Traditional, Roth, 401(k), etc.), but with the added benefit of investing in a nearly endless array of assets. This can include real estate, precious metals, private equity, private loans, raw land, and more. So, a savvy real estate investor can use their asset-specific knowledge to start growing their retirement savings – all at a tax-free or tax-deferred rate.

Diversity in allowable assets is a solid incentive for investors to start prioritizing their retirement savings strategies. If you’re ready to learn more about self-directed IRA investing, take advantage of the many educational resources provided by New Direction IRA today. Get a jump start on your retirement planning so when the 2017 Retirement Confidence Survey rolls around, you’ll confidently be part of the proactive minority that is taking steps to prepare for retirement!

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