Spring Into Retirement Savings with a Self-Directed IRA

Spring Into Retirement Savings with a Self-Directed IRA

The trees are budding, flowers are blooming, and breezes are warming throughout most of the United States. And in self-directed IRAs across the land, alternative assets are offering more creative ways to save for retirement, while providing a hedge against growing concerns around the volatility of the stock market.

There’s still time to maximize your savings by contributing to a new account for both 2022 and 2023—for Traditional and Roth IRAs, that is up to $6,000 for 2022 ($7,000 if you are age 50+) and $6,500 for 2023 ($7,500 if you are age 50+). You have until the tax day deadline, which is Tuesday, April 18th, to take advantage.

So, what’s an account owner to do with those funds?

Grow your retirement savings through self-direction

By opening a self-directed IRA this spring, you open the door to a wide array of investment options that can be included in these types of accounts.

A self-directed IRA enables you, the investor, to build a more diverse retirement portfolio by investing in assets you already know and understand—and might already be investing in outside of your existing IRA.

The idea behind self-direction is that the account owner is truly self-directed—comfortable making all investment decisions, doing all the research and due diligence on the investment, and directing one’s retirement portfolio quite actively (but there are plenty of more passive opportunities out there as well!). The plan administrator executes the transactions upon the account owner’s instructions and the custodian holds the assets on behalf of the IRA.

Why a self-directed IRA?

Unlike typical brokerage accounts that limit your IRA to stocks, bonds, and mutual funds, self-directed IRAs can include a broad array of nontraditional investments. These include real estate, precious metals, royalties, private equity, secured and unsecured loans, and many more. You can read up on this on our FAQ page.

In short, if a certain investing opportunity arises that makes sense for your retirement saving goals, you can go for it within your self-directed IRA. You can include assets that align with your values, such as certain ESG investments and social causes. These alternative assets tend to not correlate with the stock and bond markets, so typically, they deliver returns over the long term without the volatility many other investors experience. And you’ll get the same tax advantages as a regular IRA, whether those retirement savings grow tax-deferred or tax-free.

Take a fresh look at your retirement savings this spring

When spring is in the air, it brings a feeling of renewal to many people. It’s a great time to renew your commitment to saving for retirement—perhaps in a new way with a self-directed IRA. If you have questions about this retirement strategy, you can schedule a complimentary educational session with a Next Generation representative who will explain how self-directed IRAs work and the many options available through these plans. We invite you to watch our on-demand webinars as well, which focus on various alternative asset classes. You can always call us at 888.857.8058 or email NewAccounts@NextGenerationTrust.com. At Next Generation, we love to talk about self-directed retirement plans at any time of the year!

Jaime Raskulinecz, CEO of Next Generation Services, Shares Insights About Prohibited Transactions in Self-Directed IRAs With Forbes Finance Council Readers

Article Explains Common Errors Investors Make Related to Alternative Assets Within Self-Directed Retirement Plans

ROSELAND, NJ, March 27, 2023 /24-7PressRelease/ — Jaime Raskulinecz, founder and CEO of Next Generation Services, LLC, has published an article in the Forbes Finance Council column titled, “Why You Need to Understand IRA Prohibited Transactions.” In it, she explained what constitutes a prohibited transaction according to IRS guidelines, and common errors self-directed investors make that are related to the alternative assets allowed within self-directed IRAs.

Self-direction allows investors to include many alternative assets—such as real estate, precious metals, private equity funding, and royalties—within their retirement plans. Next Generation provides comprehensive account administration and asset custody for its clients who self-direct their retirement portfolios. As such, Next Generation’s transaction support team ensures that clients’ investments comply with IRA guidelines. However, as Raskulinecz noted in her article, there are three common errors investors make in relation to those assets, that create a prohibited transaction.

“The three types of prohibited transactions investors should avoid are per se, which is engaging in a transaction with a disqualified person; extending credit from the IRA to a disqualified person; and self-dealing, in which the IRA owner or other disqualified person benefits from the retirement account’s investments,” said Raskulinecz. “It is important to understand these, to avoid losing the tax-advantaged status of the self-directed retirement plan and trigger unfavorable tax consequences.”

The article contains several examples of how prohibited transactions may occur with different types of alternative assets, and the negative tax consequences that ensue. You can read the full article here.

To learn more about Next Generation Services or self-direction as a retirement strategy, visit www.NextGenerationTrust.com.

About Next Generation Services, LLC
Founded on the philosophy that every person should have control over their retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Services provides comprehensive account administration and transaction support, and its sister company, Next Generation Trust Company, acts as custodian for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or NewAccounts@NextGenerationTrust.com.

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Next Generation Services Announces that all Eligible Staff Members Have Earned SDIP Designation from RITA

Employees Have Met all Qualifications as Self-Directed IRA Professionals from the Retirement Industry Trust Association

ROSELAND, NJ, March 24, 2023 /24-7PressRelease/ — Jaime Raskulinecz, founder and CEO of Next Generation Services, LLC, has announced that all team members directly involved with client services, marketing, sales and operations have earned the designation of self-directed IRA professional (SDIP) from the Retirement Industry Trust Association (RITA).

The SDIP certification program is for professionals who exhibit dedicated technical, operational and compliance-oriented expertise regarding self-directed IRAs. According to the RITA website, the certified SDIP designation signifies that an individual working in the self-directed IRA industry has attained comprehensive training in IRA alternative investments, UBTI, anti-fraud measures and disclosures, IRA documentation, reporting, eligibility and contribution requirements, IRA portability and distributions.

Next Generation provides comprehensive account administration and asset custody for its clients who self-direct their retirement portfolios. Self-direction allows investors to include many alternative assets—such as real estate, precious metals, private equity funding, and royalties—within their plans.

“Given our dedication to client service, we all recognize the importance of being knowledgeable about all aspects of self-directed retirement plans,” said Raskulinecz. “The demonstrated expertise of our team is applied every day in how we administer our clients’ accounts, and provide client education.”

Staff members of Next Generation earned the certified SDIP designation as follows:

• Jaime Raskulinecz, Founder & CEO, January 2020
• Karen Jung, Director of Finance, March 2020
• Kyle Schickram, Operations Manager, January 2016
• Bill Wittler, Transactions Manager, May 2016
• Emma Olson, Client Service Supervisor, January 2020
• Jack Malpass, Business Development Specialist, May 2021
• Lisa DeSimone, Client Service Associate, July 2022
• Erica Figueiredo, Marketing Specialist, June 2022

Criteria for SDIP designation
Candidates for the SDIP designation must have a minimum of two years of dedicated IRA operational and technical expertise, after which they attend the RITA IRA Advanced Institute and pass the RITA IRA Advanced Institute exam. Additionally, candidates must either pass the RITA IRA Fundamentals test or have a CISP (Certified IRA Service Professional) designation, which is administered by the American Bankers Association; Schickram and Wittler both have CISP designations as well.

Successful SDIP candidates also require a letter of recommendation attesting to their professional qualifications and experience in the field. SDIP designees must maintain their certification via continuing education on an annual basis.

More information about RITA and SDIP certification can be found here. To learn more about self-direction as a retirement strategy, visit the Next Generation website at www.NextGenerationTrust.com.

About Next Generation Services, LLC
Founded on the philosophy that every person should have control over their retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Services provides comprehensive account administration and transaction support, and its sister company, Next Generation Trust Company, acts as custodian for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or NewAccounts@NextGenerationTrust.com.

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Next Generation Shares Industry Insights Regarding High-Net-Worth Investors and Alternative Assets in Self-Directed IRAs

ROSELAND, NJ, March 22, 2023 /24-7PressRelease/ — Next Generation Services has published information regarding how self-directed retirement plans and alternative investments may enable high-net-worth (HNW) investors to build more retirement wealth while also shielding their assets from market volatility. HNW individuals are typically defined as those with at least $30 million in investable assets.

“The latest research shows that self-directed investors have an advantage in the marketplace because they can diversify their assets, protect their portfolios from risky investments, and have the potential for more lucrative returns,” said Jaime Raskulinecz, founder and CEO of Next Generation. “This strategy provides value to high-net-worth individuals seeking tax-sheltered investments that tend to not correlate with the stock market.”

In the face of market volatility, wealthy investors turn to alternative assets

Anyone with heavy investments in stocks and bonds in 2022 has felt the pain of sharply declining portfolio values. Next Generation shared that:

• The disappointing stock market performance led 80% of investors ages 21-42 to seek alternative investments
• Investors with a net worth of at least $5 million have 9.1% of their assets in alternatives to stocks and bonds, up from 7.7% in 2021

Additionally:

• Among high-net-worth individuals, 81% invested in alternative assets in 2020, which comprised half of this group’s assets
• Investors with a net worth of at least $1 million allocated 26% of their assets to alternative investments that year
• Given market conditions, savvy investors and HNW individuals seek long-term investments such as real estate, precious metals, private equity, hedge funds, secured and unsecured loans, among others

Raskulinecz noted that alternative investments are often less volatile than stocks and bonds and can offer a higher rate of return. As these assets provide a hedge against market volatility, making investments within them can reduce risk while enhancing the investor’s ability to build more retirement wealth through tax-sheltered retirement vehicles, such as a self-directed IRA.

However, HNW investors aren’t the only ones who can include alternative assets in their retirement portfolios. In fact, anyone can self-direct their retirement investments and include alternative assets within a self-directed IRA, regardless of their financial stature.

Next Generation’s blog and webinars offer educational information about self-direction as a retirement wealth-building strategy and the many investment options allowed in self-directed IRAs. Learn more at www.NextGenerationTrust.com.

Founded on the philosophy that every person should have control over their retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Services provides comprehensive account administration and transaction support, and its sister company – Next Generation Trust Company – acts as custodian for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or NewAccounts@NextGenerationTrust.com.

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CEO Jaime Raskulinecz of Next Generation Services Shares Insights in U.S. News & World Report About Self-Directed IRAs

Expert in Self-direction as a Retirement Strategy Comments on Common Mistakes Investors Make

ROSELAND, NJ, March 20, 2023 /24-7PressRelease/ — A recent article in U.S. News & World Report titled “Self-Directed IRA: Know the Risks Before Investing” laid out the basics of self-directed IRAs—what they are and the types of investments these retirement plans allow. Among the industry professionals quoted in the article is Jaime Raskulinecz, founder and CEO of Next Generation Services and Next Generation Trust Company.

Raskulinecz shared her perspective on the ideal self-directed investor and common errors investors make. As she described, self-directed IRAs are best suited for sophisticated investors who take the time to understand the regulations regarding the alternative assets allowed in these plans or those who work with an experienced financial advisor familiar with the alternative investment space. Self-directed IRAs enable investors to include a broad array of alternative assets within their plans, such as real estate, precious metals, private equity, secured and unsecured notes, and many more.

As for the common mistakes her firm sees, Raskulinecz noted that the biggest ones involve allowing a disqualified person to use a property owned by the IRA, using personal funds to add to an investment or do improvements, lending funds from an IRA to a friend or associate in order to personally take those funds and later claim it’s a bad loan, and making an investment without adequate due diligence. She also said there is potential for fraud when investors are lured into a transaction with a party that promises unrealistic or outsized returns or cannot provide adequate details about the investment.

“In a perfect world, more advisors would be familiar with this strategy and the rules of self-directed IRAs in order to add to their practice and help investors who might be less sophisticated but could still benefit from the diversification,” she added in the article. To read the full piece, click here.

For more information about self-directed IRAs, rules about disqualified persons, or alternative assets allowed through self-direction, go to www.NextGenerationTrust.com.

About Next Generation Services, LLC
Founded on the philosophy that every person should have control over their retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Services provides comprehensive account administration and transaction support, and its sister company, Next Generation Trust Company, acts as custodian for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or NewAccounts@NextGenerationTrust.com.

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Women are Making History in Finance—and Strides in Creating Wealth

March is Women’s History Month—a perfect time to take stock of the many strides and contributions women have made to the worlds of commerce and finance. Those contributions have sometimes had a worldwide or regional impact, and the strides are often more personal. Either way, there is a lot to celebrate, and much work ahead as women continue to work hard to close the gender pay and wealth gaps.

As we noted in this 2021 Forbes Finance Council article, women have fought and progressed to be able to have credit in their names—but longstanding gender norms in families are still somewhat stagnant, although we see societal progress in that realm as well. That said, finance and investment education for women is on the rise, as are online investment platforms that cater to women:

Can you hear the glass ceilings shattering?

Gains in business

According to statistics from Fundera, women entrepreneurs—including women of color—are becoming a major force in commerce in the United States. One figure that stands out is that there are 114% more women entrepreneurs than there were 20 years ago, among others:

While these figures show promise for the future, others still show a need for more equitable progress:

Lots of room at the top for women leaders—and lots of success for the companies they lead

As a retirement services firm led by a woman founder and CEO, we want to see more women take on the world of finance. There is so much room for growth in this realm as these statistics bear out:

At Next Generation, we are fully behind woman-power in the workplace. Here are two amazing reasons why:

  1. Private tech companies led by women achieve 35% higher ROI
  2. Among companies in the portfolio of the seed-stage venture firm First Round Capital, those founded by women outperformed companies founded by men by 63%

For centuries, women have been behind great successes; we need look no further than the story of the three “Hidden Figures” behind NASA’s milestone moments to grasp that! And we will continue to push open more envelopes to create more opportunities for women in business. There’s no question that when companies keep their employment doors open to women and create a professional path to leadership, great things can happen. We salute all the women who are out there every day, making a difference for their families, communities, and companies!

Celebrating the Women of Next Generation

March is National Women’s History Month. This annual observance has been recognized formally in the U.S. since 1987.

At Next Generation, we have some of our own women’s history—and women to celebrate—that we’d like to share in honor of Women’s History Month. Let’s start at the top with our founder and CEO, Jaime Raskulinecz, CPM, SDIP.

Jaime is someone who has always identified gaps in the marketplace and filled it with what is needed. When she wanted to make real estate investments within her IRA but found there was a lack of professionals to help her make those transactions, she founded Next Generation Services in 2004, as an administrator of self-directed retirement plans. Over time, she recognized that also being the custodian of our clients’ assets would streamline our client service. In 2017 she launched Next Generation Trust Company to do just that.

Jaime is a long-time real estate investor who has also worked in real estate since 1994. She is a certified property manager (CPM) and CEO/principal of Rainbow Property Management, a credentialed real estate management firm. She is also a New Jersey licensed real estate broker, and a member of several national and statewide real estate organizations.

A recognized expert in the field of including alternative assets within self-directed retirement plans, Jaime believes investor education about self-direction should be shared widely. She has contributed articles to prominent real estate and investment publications, has spoken to investment groups, and has been interviewed many times on the topic; she is a frequent contributor to the Forbes Finance Council.

Jaime has earned several prestigious awards throughout her career for entrepreneurship and leadership, which you can read about in her bio on our website.

Karen Jung, CPA, SDIP, Director of Finance recently celebrated her seventh anniversary with us, having started at Next Generation in January 2016. Karen applies her extensive background in corporate finance to her supervision of our internal financial operations as well as the client-related areas of transaction billing and execution. She continually refines our accounting and reporting procedures to improve efficiency. In addition to being a member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants, Karen is also certified in human resource administration.

Erica Figueiredo, SDIP, Marketing Specialist started with us in July 2018 and directs many of our marketing efforts. She is most excited by marketing strategy and marketing automation, is well-trained in applications such as Salesforce and HubSpot, and holds several HubSpot Academy certifications for various marketing, sales and operational functions. Whenever you come across one of our social media posts, receive an email from Next Generation, or read one of our blog articles, know that Erica is behind those in some way. She holds a B.A. in communication studies from Kean University.

Emma Olson, SDIP, Client Service Supervisor officially joined Next Generation in August 2018. She reviews our clients’ investment documentation for compliance with IRS regulations and assists with ongoing account management. Her previous experience is in retail and banking so it’s no wonder she does so well working with individual customers and facilitating efficient transactions. Emma has a bachelor’s degree in mathematics with a statistics emphasis from the University of Utah and is an excellent critical thinker who can analyze different situations in a way that is useful in customer service.

Lisa DeSimone, SDIP, Client Service Associate joined the company in September 2020. She is part of the transaction team and assists with client inquiries and transaction support. Prior to coming onboard at Next Generation, Lisa worked for several years in the insurance industry in account management and compliance and has experience in office management, employee training and supervision, and client relations.

As you can see, the history of Next Generation is truly women’s history. All of us (even the guys!) are proud to celebrate these women and everyone’s contributions to the company’s success.

PS – If you are wondering about our team members who have SDIP after their names, this is the Self-Directed IRA Professional (SDIP) designation from the Retirement Industry Trust Association (RITA). This designation is awarded to employees within the industry who have been employed with their respective companies for at least 2 years, complete a pre-requisite training course, and pass the required examination, which demonstrates their IRA technical, operational, and compliance-oriented expertise.

Next Generation Services Publishes Updated Account Disclosure Regarding Important Changes to IRAs and Other Retirement Accounts

Administrator and custodian of self-directed retirement plans outlines changes that affect IRAs from SECURE Act 2.0 and other legislation.

ROSELAND, NJ, February 24, 2023 /24-7PressRelease/ — Next Generation Services has published updates for account owners of self-directed IRAs and other retirement accounts related to the recently enacted SECURE Act 2.0. The SECURE Act 2.0 was part of President Biden’s $1.7 trillion omnibus spending bill that was signed into law on December 29, 2022.

You can find the updated account disclosures here. The link is available at the top of the firm’s website, at www.NextGenerationTrust.com.

The account disclosures cover historical updates that affect IRAs starting with the enactment of the SECURE Act of 2019 through the CARES Act and now, SECURE Act 2.0. Taxpayers can follow the chronology of changes and download the sheet as reference.

The SECURE Act 2.0 contains over 100 provisions that affect IRAs and qualified workplace retirement plans, with many scheduled for implementation in 2024 and beyond. Among the chief provisions in effect this year, shared on Next Generation’s account disclosure form, are:

• The increase in the age at which retirement plan owners must begin taking required minimum distributions (RMDs); this rose from age 70 ½ to 73 for taxpayers who will turn age 72 during 2023 or later
• Higher contribution limits for Traditional and Roth IRAs (up by $500 for either type of IRA)
• Increased catchup contributions for those age 50+, by $1000
• Higher AGI (adjusted gross income) phase-out ranges for determining Traditional and Roth IRA deductions for active participants

“We know how important it is for our clients and owners of retirement plans to be aware of legislative updates that can affect their accounts,” said Jaime Raskulinecz, founder and president of Next Generation. “As other provisions of the SECURE Act 2.0 are enacted in the future, we will share those updates, and invite people to check our website periodically for information about retirement plans.”

Next Generation also published a blog article that outlines some additional changes to retirement plan rules that will be enacted in the future, which you can read here. Those cover some updates related to plan sponsors/employers, employees who participate in a workplace retirement plan, and owners of IRAs.

Next Generation specializes in administrative and custodial services for self-directed IRAs, which allow investors to include a broad array of alternative assets within their retirement plans. Anyone interested in learning about self-direction as a retirement wealth-building strategy is encouraged to sign up for the company’s newsletter, read the blog, or watch Next Generation’s on-demand webinars.

About Next Generation Services, LLC
Founded on the philosophy that every person should have control over their own retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Services provides comprehensive account administration and transaction support, and its sister company – Next Generation Trust Company – acts as custodian for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or NewAccounts@NextGenerationTrust.com.

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Why Savvy Investors LOVE Self-Directed IRAs

For self-directed investors, love is always in the air when it comes to their retirement portfolios. These savvy investors understand that the answer to romancing their retirement savings is by opening and funding a self-directed IRA to be used to invest in alternative assets.

Self-directed IRAs enable individuals to include a broad array of nontraditional investments in their retirement plans, using what they already know and understand to build their retirement savings. Account owners enjoy three key benefits as self-directed investors:

Investment flexibility and independence – who doesn’t love that?

Savvy self-directed investors are those who are comfortable making all their own investment decisions, based on the research and due diligence they conduct.

For example:

  1. You are already investing in real estate outside of your existing retirement plan, and understand what the world of investment property is all about. Whether you’re into the fix & flip market, rental properties, vacation properties, or have a partnership in a REIT, you could be making those investments within a self-directed IRA, with all the tax advantages that these retirement plans provide.
  2. You enjoy investing in mineral rights, music royalties, or agricultural commodities (such as lumber, corn, or soybeans). Bingo! You can make a date with a self-directed retirement plan administrator like Next Generation and start including these alternative assets in a self-directed IRA.
  3. Your friend needs an unsecured loan and you have the funds available. Your self-directed IRA can make the loan, with all the terms worked out between you and the borrower, and instructions sent to the plan administrator. You build retirement savings when the money is paid back to the IRA with interest and your friend gets the needed financial assistance.

Getting sweet on self-direction? We can help make the match.

Next Generation provides comprehensive account administration, including transaction support, and holds the assets for our clients’ self-directed IRAs. We also offer a plethora of educational materials so you can learn more at your own pace with our webinars and white papers. If you’re interested in a more coupled approach, you can also schedule a complimentary educational session with a Next Generation representative who will answer your questions about the many options available through these plans, tailored to your specific interest(s). You can always reach us directly by giving us a call at 888.857.8058 or emailing NewAccounts@NextGenerationTrust.com.