Why Savvy Investors LOVE Self-Directed IRAs

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.

Alternative Assets and High-Net-Worth Investors

Anyone who is financially savvy with alternative assets, wants to diversify their retirement portfolio, or create a hedge against market volatility can include those types of investments within a self-directed retirement plan. This strategy seems to appeal strongly to high-net-worth (HNW) and ultra-HNW individuals.

According to the Motley Fool, this may be because alternative investments are often less volatile than stocks and bonds and can offer a higher rate of return. These factors can reduce risk and enhance the investor’s ability to build more retirement wealth (through the nontraditional investments they already know and understand). Quoting an investment firm study that surveyed the super-rich, The “Fool” also stated that in 2020:

Why the wealthy are attracted to alternative assets

As noted in an article in Financial Planning, it’s possible that HNW individuals are attracted to (or don’t shy away from) investments such as real estate, precious metals, private equity, hedge funds, secured and unsecured loans, and other alternative assets because they understand these are more long-term investments.

These assets are also not correlated with the stock market. Investing in a real estate partnership is likely to return a much higher return than traditional stocks. The article cites a report by Cerulli Associates whose research found that investors with a net worth of at least $5 million now have 9.1% of their assets in alternatives to stocks and bonds, up from 7.7% in 2021. Cerulli Associates projects this figure to increase to 9.6% in the next year.

Anyone with heavy investments in stocks and bonds in 2022 has felt the pain of sharply declining portfolio values. With that in mind, it isn’t surprising that about half of the respondents in the Cerulli Associates study said they are attracted to alternative assets to diversify their portfolios and another 50% look for growth opportunities that these asset classes can deliver.

The Cerulli Associates survey cites private real estate investments as popular among financial advisors who work with HNW clients; and another report quoted in the article (by Robert A. Stranger & Co.) found that $33M was raised in 2022 for private REITs—where investors can put money into office buildings, multifamily properties, and other income-generating real estate assets. Cerulli’s results also support private equity funds as appealing to the wealthy, with 45% of respondents saying, “they would be directing more money to private equity in the next two years.”

Private credit—a scenario in which multiple investors pool their money into loans to privately held companies—is another way many of the ultra-wealthy are investing in alternative assets according to the survey.

Younger HNW investors also seek out alternative investments

Disappointing stock market performance is a big reason why younger HNW investors are turning to alternative investments, as reported by CNBC. The media outlet stated that 80% of investors ages 21-42 are invested in alternative assets because most of them don’t expect “above-average returns” from traditional stocks and bonds. CNBC went on to say that these younger investors allocate three times more to nontraditional investments than other generations, and only half as much of their portfolios in stocks than their parents or grandparents held.

Including alternative assets in a self-directed IRA

High-net-worth investors aren’t the only ones who can include alternative assets in their retirement portfolios. Anyone who self-directs their retirement investments can include a broad array of alternative assets within their self-directed IRA (Traditional or Roth), other self-directed retirement plan (SIMPLE IRA, SEP IRA, Solo 401k), an education savings account, or health savings account.

You can learn more about the many options and benefits of self-directed IRAs by registering for a complimentary educational session at Next Generation with a knowledgeable representative. Alternatively, you may contact our helpful team by phone at 888.857.8058 or by email at NewAccounts@NextGenerationTrust.com.

The SECURE Act 2.0 and How it Affects Retirement Plans

In December 2022, President Biden signed the $1.7 trillion omnibus spending bill. Bundled into it is the SECURE Act 2.0 retirement reform package, which includes provisions that will affect the retirement industry and increase the savings potential for many Americans. Most of the 100+ provisions do not go into effect until January 2025, but some affect plan sponsors and account owners now.

Here’s a recap of need-to-know SECURE Act 2.0 provisions that are designed to help close Americans’ retirement gap (financial readiness to retire) and help provide more opportunities and ways to build retirement savings.

RMD age is higher

Uppermost in account owners’ minds is likely to be the higher age at which required minimum distributions must start from pre-tax retirement accounts. The first SECURE Act, passed in 2020, pushed the RMD age to 72. Starting on January 1, 2023, the RMD age is now 73 years old. This will get pushed up again in 2033 to age 75. Taxpayers who turned 72 years old last year (2022) must still take minimum distributions. RMDs apply to all pre-tax retirement accounts (such as Traditional IRAs), but not after-tax retirement accounts (such as Roth IRAs). As always, we recommend you discuss your RMD strategy with your trusted advisor, as everyone’s financial needs and tax scenarios differ.

RMDs and Roths

Unlike a Roth IRA, a Roth 401(k) is subject to RMDs. The SECURE Act 2.0 eliminates RMD requirements for workplace-based Roth plans beginning in 2024. Therefore, Roth 401(k)s will be treated similarly to Roth IRAs regarding required minimum distributions (in other words, no more RMDs for workplace Roth accounts starting next year).

Roth accounts for SIMPLE and SEP retirement plans

Effective now, employers may create Roth accounts, open to after-tax contributions, for SIMPLE and SEP retirement plans, which previously only allowed for pre-tax contributions.

Increased catch-up contributions

Catch-up contributions to retirement plans are for people ages 50 and older, who may contribute amounts above the typical annual contribution limits.

For IRA owners, your catch-up contributions (currently limited to $1,000 extra per year) will be adjusted for inflation in increments of $100 starting in 2024.

New emergency withdrawal exemption

Effective January 1, 2024, a new exemption will enable retirement plan owners (IRA or 401(k) plan) to withdraw up to $1000 annually, without tax penalty, “for purposes of meeting unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses.” Note that after this provision goes into effect, those borrowed funds MUST be replenished within three years to avoid future penalties if you make another emergency withdrawal for the same reasons as stated here.

Until then (throughout 2023), you will still pay a 10% tax if you withdraw funds from your retirement account before you are 59 ½ years old.

Of note: Employers can now create emergency savings accounts within their retirement plan.

Automatic enrollment in employers’ 401(k) or 403(b) plans

Does your employer now offer a 401(k) or 403(b) retirement savings plan? If so, effective January 1, 2025, you will be automatically enrolled in a new 401(k) or 403(b) once you become eligible (existing plans are grandfathered). Unless you opt out of participating, your employer will deduct money from each paycheck automatically, and transfer it into the 401(k) or 403(b). SECURE 2.0 specifies that the initial contribution must be between 3% and 10% of your pretax earnings. The contributions will escalate by 1% per year of service to a minimum of 10% and a maximum of 15%. An employee can opt out of the escalation (as well as the auto-enrollment).

Part-time employees must be auto enrolled in their employer’s 401(k) after two years, instead of the current three-year wait.

Exempt from this mandate are small businesses with 10 or fewer employees and newer businesses that started less than three years ago.

Roth account contributions by employers

Effective now, participants in qualified plans can designate that their employer’s matching or non-elective contributions be directed to a Roth workplace account. The amount of the contribution will be added to the employee’s gross income, but it won’t be subject to FICA employment taxes.

In 2024, catch-up contributions for employees earning more than $145, 000 in the previous year must go into a Roth 401(k). That means that anyone who earns more than this amount this year will be subject to the new Roth requirement next year.

Discuss this with your plan administrator to get the most updated information as these provisions roll out.

Higher startup credit for small businesses

The small-business startup tax credit for companies with up to 50 employees goes from 50% of administrative costs to 100%, up to $5,000. This went into effect this month (January 1, 2023).

In addition, a new startup credit allows plan sponsors to write off up to $1000 of employer contributions per eligible employee; the percentage of allowable credit decreases over five years to zero. This credit does NOT apply to defined benefit plans.

Student loan considerations

Employers can treat student plan repayments as elective contributions to one’s retirement plan for matching purposes in the company’s 401(k) plan. In other words, the bill supports workers who want to save while also paying down their student loan debt, by allowing them to receive matching contributions to their retirement accounts based on student loan payments.

529 plan rollovers

Taxpayers who have funds left over in a 529 account (which can only be used to cover qualified educational expenses) will be able to roll over up to $35,000 into a Roth IRA account without penalties. This applies to 529 accounts that were opened at least 15 years ago and it goes into effect on January 1, 2024.

There are more retirement plan changes to come or already in place for qualified plan sponsors, small-business owners, and investors who are saving for retirement. Given that self-directed retirement plans adhere to the same legislative requirements and provisions as their counterparts available from employers, banks, and brokerage houses, we are sure our clients who self-direct their retirement investments will have questions about how SECURE 2.0 affects them. As always, we are available to answer your questions about self-directed IRAs.

If you are new to Next Generation or are considering self-direction as a retirement wealth-building strategy, you can email us at NewAccounts@NextGenerationTrust.com or give us a call at 888.857.8058. You may also schedule a complimentary educational session to discuss self-directed IRAs and working with Next Generation as your plan administrator and custodian.

How Passive Investments Can Boost Your Retirement Savings

In December, Next Generation announced a new webinar about investing passively in alternative assets, such as certain real estate classes, for example. It featured Scott Ritchie, business development specialist at Next Generation and Ted Greene, investor relations manager of Spartan Investment Group.

They discussed the current market and what might lie ahead for investors in the coming year as the Fed attempts to slow down the economy. The conversation turned to how passive investing can be a lucrative approach to building a retirement portfolio that meets investors’ personal goals. Of course, Scott talked about how that works with self-directed IRAs.

As we shared in a prior post, passive investing is a strategy wherein the individual makes investments in certain alternative assets that, after the upfront work and research are done, require no management on the investor’s part. It’s about being more hands-off (that’s the passive part), as the asset returns continued value to the investor.

Why passive investments?
The passive investment market is one way—with many asset options—to diversify one’s retirement portfolio and steer away from traditional stock market investments. It also provides investors with fresh ways to look at how they are investing. The question raised in the webinar was: Do you invest to make as much in gains as you can, and “go big” without regard to your risk profile and proximity to retirement age, or invest in line with your financial goals, with assets that will get you there?

With passive investments in real estate and other alternative assets—which can be included in a self-directed IRA—investors can, in Ted’s words, “orchestrate their portfolio and invest to get what they need . . . to architect a portfolio that provides cash flow to meet certain budgetary needs.”

Scott and Ted discussed the importance of taking on this posture the closer we are to retirement, with a strategy that creates income from a basket of private investments that work together to deliver the cash flow you need. The passive investment market is a tool to use to attain this goal.

As Ted explained, certain real estate classes—such as self-storage and multifamily housing, or investing via real estate syndication—can provide incremental net operating income that may yield that cash flow.  Further, the beauty of that cash flow is that it can protect the asset’s value even in the face of rising interest rates (as we are experiencing in the market right now), and therefore can protect the investor as well.

Assessing the private investment market for your self-directed retirement portfolio

Determining one’s individual picture of “success,” identifying the risks and characteristics of certain private investments, and evaluating how those investments perform in risk-on and risk-off periods can be some of the factors in considering a private investment strategy for one’s retirement plan.

Ted suggested that investors think about creating a road map based on their definition of success to determine where, how, and when to move assets based on the account owner’s risk profile. Factors in that road map could look like this:

The strategy would be to consider investments that can yield small increments of income spread out over various asset classes, with different risk profiles and maturity schedules. This can build a highly diverse portfolio and enable account owners to map out their current holdings based on various asset classes. This map can help spotlight how the different assets are performing and inform where to make investment adjustments to meet one’s financial goals.

We invite you to listen to the webinar and learn more about how a passive investment strategy can align with your self-directed retirement plan. As always, if you have questions about self-direction as a retirement wealth-building strategy, or want insights into the many options and benefits of a self-directed IRA, you can schedule a complimentary educational session with a Next Generation representative. You can also contact us by email at NewAccounts@NextGenerationTrust.com or call us directly at 888.857.8058.

Qualified Charitable Distributions: Charitable Giving Through Your IRA

Holiday time means receiving numerous appeals for charitable donations before the end of the year. Taxpayers often hurry to get their year-end checks or online donations transacted before December 31 so they can take the deduction on this year’s taxes.

Rather than write out a check, did you know you can use your Traditional IRA (or other tax-deferred account) as the source for making these donations? This is done via a qualified charitable distribution (QCD), for retirement-age taxpayers.

There are good tax-related reasons to do a QCD, so the charitable donation has double benefits to the account owner and the charity that receives the funds.

What is a qualified charitable distribution?

For people or couples who do not yet need the income from their mandatory required minimum distributions (which must start at age 72), they may use the QCD strategy, also called a charitable IRA rollover.

This QCD strategy enables charity-minded individuals to send up to $100,000 a year from their tax-deferred IRA to an operating charity (or qualifying public charity) as defined by the IRS in IRC section 170(b)(1)(A). The amount may represent all, a portion of, or more than their annual required minimum distribution (RMD). Account owners who are eligible to start taking RMDs may do this.

Why take a QCD?

Taking required minimum distributions from one’s IRA increases your taxable income (the withdrawals are subject to ordinary income tax). In some cases, this additional income may push the taxpayer into a higher tax bracket. This in turn may adversely affect Social Security and Medicare benefits.

Enter, the QCD.

Tax benefits of a QCD

While a qualified charitable distribution is not a tax-deductible contribution, the assets that are rolled over go directly to the charity. This bypasses the IRA owner, who will not have to report the QCD amount as taxable income and therefore, will not owe any taxes on it. Of course, the charity benefits as well with a generous donation.

The QCD is excluded from the donor’s taxable income and the taxpayer’s adjusted gross income is reduced, providing an additional tax benefit.

Do’s and don’ts of a QCD

As always, the team at Next Generation recommends you consult with your tax advisor or estate planning professional to make sure the QCD strategy is in your best financial interest. If you have a self-directed IRA with Next Generation, we will execute your instructions regarding the qualified charitable distribution once you have done your due diligence about the charity and your RMD amount.

From all of us at Next Generation, best wishes to you for a joyful holiday season!

Investors Have a Lot to be Thankful for with Self-Directed IRAs

Self-directed IRAs have been around since the inception of IRAs in the 1970’s. While there is still much that is misunderstood about them, they provide a world of benefit to savvy investors who are comfortable making their own investment decisions. As we look to the Thanksgiving holiday, we’d like to highlight those benefits, which show why the many investors currently using self-directed IRAs have a lot to be thankful for.

The broad array of alternative assets these plans allow enable individuals to build a more diverse retirement portfolio. The importance of this cannot be overstated in these turbulent times for the stock market. Countless investors whose portfolios are locked into stocks, bonds and mutual funds have seen balances plummet, then rise a bit and drop again this year. We all know that what goes down eventually comes back up (and vice versa), but creating a hedge against this stock market volatility through self-directed investments is an excellent strategy.

Alternative assets tend to not correlate with the stock market. While traditional investors are wringing hands over poor stock performance, owners of self-directed IRAs can enjoy many happy tax-advantaged returns from real estate, private stock or venture capital, gas and oil, and many other nontraditional investments.

All types of retirement plans can be self-directed with alternative assets. The types of plans that you would typically be able to open through a brokerage can also be self-directed. This includes Traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, Solo 401(k)s and even ESAs (Education Savings Accounts) and HSAs (Health Savings Accounts). The main difference between a “self-directed” account with a brokerage and a “self-directed” account with a custodian like Next Generation are the types of investments that can be included within them to build retirement wealth.

The flexibility, creativity, and agility that self-direction offers investors is unparalleled. Self-directed investors can take advantage of investment opportunities as they arise with greater ease. And they can include a personally selected mix of assets that closely align with their values, knowledge or expertise, and retirement savings goals. As we stated above, individuals who are comfortable making their own investment decisions are most grateful for the added control they have over their investment returns afforded through this strategy.

What is Next Generation thankful for?

Since our founding in 2004 as a third-party administrator of self-directed retirement plans, Next Generation has helped countless investors build their retirement savings through self-direction. In 2017, we launched Next Generation Trust Company, our custodial arm, to better serve our clients with full administration and custodial services under one corporate umbrella. We are thankful to all the people who have opened accounts with us and helped us grow, to the expert collaborators with whom we have provided client education, and to the many individuals who have referred our firm to investors wishing to self-direct their retirement portfolios.

It brings us an abundance of joy knowing that each and every day we help individuals achieve the retirement goals they once dreamed of by providing best-in-class education on self-direction as a retirement strategy and exceptional customer service.

From all of us, thank you.

Retirement Plan Contribution and Income Limits for 2023

The IRS has increased the contribution limits for all types of retirement plans—Traditional and Roth IRAs, certain governmental plans, and qualified retirement plans (defined benefit and defined contribution plans) for 2023. The new amounts adjust for cost-of-living increases and also apply to income limits as we detail below.

Cost-of-Living Adjusted Limits for 2023

Roth IRA contribution and AGI limits

Taxpayers with a Roth IRA may contribute up to the full allowed amount annually depending on their income. The adjusted gross income (AGI) ranges have increased for 2023 for making the maximum deductible contributions.

Traditional IRAs

If the taxpayer or the spouse was covered by a workplace retirement plan during the year, the deduction on the Traditional IRA contributions may be reduced or phased out until it is eliminated. This depends on filing status and income.

All the details about these increased contribution limits and cost-of-living adjustments for 2023 are on IRS.gov (see Notice 2022-55), which also has information for participants in employer-sponsored retirement plans. As always, we recommend you consult your trusted tax advisor for guidance.

Maximize your contributions to a self-directed IRA

All types of IRAs may be self-directed (Traditional, Roth, SEP, SIMPLE, etc.). While they are governed by IRS contribution limits, the types of alternative assets these plans allow are far broader than in their typical counterparts. Therefore, you can maximize those annual retirement plan contributions by investing in a broad array of alternative assets you already know and understand.

With a self-directed IRA, you can build a more diverse retirement portfolio and a hedge against market volatility and inflation—so crucial in today’s market. You’ll also have the potential to save more for retirement through nontraditional investments such as real estate, precious metals, private equity, royalties, and many more. The only limitations on your self-directed investments are no collectibles or insurance policies, no self-dealing or extensions of credit, and no transactions with disqualified persons.

Self-directed IRAs at Next Generation

As we head into 2023, consider how you can maximize your annual retirement plan contributions with a self-directed IRA at Next Generation—and the diversity of alternative assets you can include.

Need more information? Contact us today.

Where Will Your Retirement Dreams Take You? A Self-Directed IRA Can Help Get You There

If an affordable retirement lifestyle is at the top of your wish list, best to put Hawaii at the bottom, as a recent Bankrate report revealed it to be the most expensive state for retirement this year.

The top ten list of least affordable states are Hawaii followed by: California, Connecticut, Massachusetts, New Jersey, Vermont, Rhode Island, Maryland, New York, and Maine.

Bankrate evaluated two data reports to derive its affordability list for each state. They were the Community and Economic Research’s cost of living index (July 2022) and the Tax Foundation’s 2022 rankings for property and sales tax rates. See how your state ranks for retirement affordability here.

It is estimated that retirees will need about $2 million saved for that retirement in Hawaiian paradise, due to that state’s cost of living. However, many Americans have not saved nearly that millionaire amount. CNBC reported that on average, Americans have saved up approximately $141,542 for retirement, based on Vanguard’s 2022 “How America Saves” report.

Of course, what one person deems “affordable” may be another person’s “out of reach” based on retirement savings and sources of income. The definition of “comfortable retirement” also varies. Is it downsizing to a modest home, living on a small monthly budget, and taking one big travel splurge a year? Is it a luxury beach house and a busy social life or a quiet retreat? A NYC condo, weekly theatre outings, and dining out several times a week?

When you factor in the inflation and extreme stock market volatility of 2022, many near-retirees may be reconsidering their retirement timelines, with plans to work a bit longer to cover living expenses and have more time to shore up their retirement accounts.

Planning early and often for retirement will help guide savings goals and determine how to invest your retirement savings. And saving for retirement with a self-directed IRA could help you reach those retirement goals (and that dream lifestyle) by investing in alternative assets.

Self-directed IRAs forge a potential path to that dream retirement

Taxpayers can’t do much about inflation other than weather that financial storm. But when it comes to building a more diverse retirement portfolio—and a hedge against stock market volatility—self-direction can be a powerful retirement strategy.

Imagine building retirement savings with investments whose performance may not correlate with the stock market—investments in which you may already be investing outside of your existing retirement account.

Self-directed IRAs can include a broad array of nontraditional investments. This enables account owners to think big about their retirement dreams and use real estate, private stock, precious metals, cryptocurrency, tax liens, secured and unsecured loans and many more alternative assets to build retirement wealth. Plus, self-directed IRAs offer all the same tax advantages of their regular IRA counterparts. You can open and self-direct a Traditional or Roth IRA, a SIMPLE IRA, Solo (k) or SEP plan, as well as a health savings account or education savings account.

If you are comfortable doing your own research into alternative assets, conducting your due diligence on those investments, and making your own investment decisions, you can design a retirement portfolio with the potential to support a comfortable retirement anywhere your dreams take you.

Get started on your dream retirement at Next Generation

At Next Generation, our team of IRA specialists can walk you through the steps to open and fund your self-directed retirement account, as well as discuss your investment ideas. In addition, the webinars offered on our website provide expert insight on making a variety of nontraditional investments through self-direction.

Need more information? Contact us today.

Gig Workers: Tips for Building Your Retirement Savings Hustle

The gig economy is growing, with more people working “on-demand” and side jobs. According to the U.S. Chamber of Commerce, gig workers are independent contractors or freelancers who typically do short-term work for multiple clients. The work may be project-based, hourly or part-time, an ongoing contract or a temporary position. What they have in common is that they earn income outside of traditional long-term, employer/employee arrangements.

Popular food delivery, pet care and transportation services, usually app or online-based, are among the more well-known side hustles that emerged in recent years. However, there’s more than on-demand work in the gig economy. Upwork reported that in 2021:

Saving for retirement as a gig worker

As independent contractors, gig workers do not get the same workplace benefits that many employees may have, such as health insurance or access to an employer-sponsored retirement plan. Plus, the lack of a steady paycheck may make it difficult for some to save for retirement.

At Next Generation, we’re all about educating people on how to build retirement savings. And we love the entrepreneurial spirit that goes along with growing a freelance business or enjoying the schedule and location flexibility of gig work. To that end, we offer these retirement tips for those working in the gig economy:

#1: Explore the types of tax-advantaged retirement plans available to you as a self-employed taxpayer.

#2: Tap into your affinity for flexibility with a self-directed IRA.

When it comes to the types of investments these retirement plans can include, a self-directed IRA offers a higher level of flexibility and creativity—with the same tax advantages of their typical counterparts. You can self-direct a Traditional, Roth, SIMPLE or SEP IRA, as well as a solo 401(k) – you can even self-direct an Education Savings Account (ESA) or Health Savings Account (HSA).

As a member of the gig workforce, you can make contributions to your self-directed retirement plan as your income allows—and grow those contributions through a broad array of alternative assets not available in other plans. These include real estate, unsecured and secured loans, precious metals, royalties, and many more. Doing so gives that extra boost to your retirement savings, provides a hedge against stock market volatility, and allows you to take advantage of investment opportunities not available through stocks, bonds or mutual funds.

Furthermore, if you weren’t always part of the gig-economy and you used to have a regular, W-2 job, you may have some cash sitting in an old employer-sponsored plan, like a 401(k), that can be rolled over into a self-directed account.

“Self-direction” means you are comfortable doing your own research and making your own investment decisions—just as you are directing your professional life. And many people who already know and understand nontraditional investments want to build a more diverse retirement portfolio by including alternative assets in a self-directed IRA.

Need more information? Contact us today.