Envisioning the Perfect Retirement…and How a Self-Directed IRA Can Help Get You There

Published on May 6, 2024

As custodians of self-directed IRAs, we know it’s never too early to plan for retirement. Even if you are in your mid-thirties and enjoying your work, we hope you are saving for those later years with a retirement plan (whether employer-sponsored or through an IRA).

Naturally, as we all get older and retirement is more firmly in our sights, visions of what that looks like come into view.

What does the perfect retirement look like to you? Here are some lifestyle suggestions to consider.

To work or not to work

Many people continue to work throughout those later years, even after they’re eligible to collect their Social Security benefits. Some do so out of financial necessity while others choose to because it’s how they prefer to spend their time.

Retirement from one career enables you to try something new, perhaps as a part-time vocation. For example, professionals often supplement their retirement income by applying their knowledge and expertise as consultants in their field, taking clients when they want to.

Once you step off the career ladder, there are plenty of fresh job opportunities related to your hobbies or interests that give you something to do a few times a week. Do you love to knit and spend time (and money) at the yarn store? Maybe the owner needs some help. Are you an avid do-it-yourselfer? A home improvement center may welcome your knowledge and passion on the selling floor. You get the idea.

Speaking of hobbies and interests, retirement is a great time to indulge them any time. From stamp collecting to gardening, dance lessons to art classes, there is now plenty of time to enjoy what you used to consign to your days off—IF you had the time.

Volunteer

You may wish to donate some of your time to causes and charities you support. Nonprofits are always looking for volunteers in various capacities and they can always use your time and talent. Join the fundraising committee, work in the thrift store, make phone calls, or do office work—there’s always somewhere to contribute something besides money.

Lifelong learning

Many community colleges, public libraries, and community schools offer courses on a broad range of topics. Take some! Is there a degree you didn’t pursue or finish? There’s no time like retirement for crossing that off your list. The good news is, now you can keep going “back to school” as often as you’d like, just for the fun of it. There are also specialty travel companies that cater to older adults who want to combine worldwide travel with educational lectures and enriching discussions.

Start fresh in a new place

If you have a second home in a vacation area, it might be time to sell your primary residence—and be on vacation all the time. If you’ve always longed to live at the beach, in the mountains, or in a country club community, now’s the time to make your move!

If you’re tired of the ‘burbs or want to get out of the city, explore different areas and consider moving somewhere new that offers activities and an environment more suited to this phase of your life—including a foreign country.

Plan for the perfect retirement with a self-directed IRA

Although the “perfect” retirement is subjective, one thing is sure: it’s going to take more than your Social Security benefits to bankroll your retirement years (and all the fun you’re planning to have!), possibly for several decades.

Funding a self-directed IRA during your earlier working years, and including the alternative assets these plans allow, can help generate the savings you’ll need to live it up during retirement. With a self-directed IRA, you will diversify your retirement portfolio, build a hedge against market volatility, and be positioned to take advantage of investment opportunities more nimbly.

As a self-directed investor, you’re in charge of selecting the nontraditional investments that will get you to your retirement savings goals. If you’re comfortable making your own investment decisions and conducting your due diligence and research about the many alternative assets allowed in self-direction, consider making a self-directed IRA part of your plan for that perfect retirement now, and build those tax-advantaged savings for many rainy days ahead.

Need some more information about this strategy? Register for a complimentary educational session with Next Generation, or contact our helpful team at NewAccounts@NextGenerationTrust.com or 888.857.8058.