Build your financial future by maximizing your retirement assets.

Are you one of a multitude of investors who recently experienced significant losses in your retirement account as a result of the stock market crash?

In 2008, Americans were faced with the unthinkable collapse of major investment banks and corporations, combined with diabolical scandals targeting investors. The climate of fear created by scandals like the recent global Ponzi scheme masterminded by rogue Bernie Madoff has some investors running for the proverbial hills with their savings.

The Recovery Plan

Investors fed up with shrinking retirement accounts and failing financial institutions supporting them may want to consider taking control of their financial destiny and start building wealth with a self-directed IRA. The key advantage of the truly self-directed IRA is that the account owner is directly involved in choosing the IRA assets. A self-directed IRA allows asset classes in both “traditional” investments such as stocks, bonds, and mutual funds as well as “non-traditional” investments such as real estate (foreign and domestic), mortgages, notes, tax liens, limited liability companies, placements private and much more.

An increasing number of people are discovering the Self-Directed IRA, an investment vehicle that offers the freedom to choose from this variety of investment alternatives without being “locked in” with the limitations of traditional stock investments that brokers and bankers offer to his IRA.

Wall Street’s motive for monopolizing your retirement portfolio is based on the high “fees” they charge for selling you their limited menu of financial products. In contrast, a self-directed IRA custodian and manager will not (or cannot by law) sell you investment advice, financial products, or charge you commissions; they simply charge an annual fee of between $100 and $2,000, depending on the investment portfolio.

The power of diversification

Consider this. Most of us are familiar with the term “diversification” when it comes to investing, right? Diversification is a concept that is often explained with the old saying, “don’t put all your eggs in one basket.” Harry Markowitz, thought leader and developer of the Modern Portfolio Theory, said that diversification is the “free lunch of finance.”

Yes, it is considered mission critical to maintain a diversified “mix” of investments in an investment portfolio. And the rather shocking fact is that the retirement portfolios of the 96% of American investors currently housed in inflexible traditional IRAs at banks and brokerage firms simply do not adhere to this conventional wisdom. (Buyer beware: The “self-directed IRA” offered by many banking institutions and brokerage houses is a “misnomer”; it is a term that implies that the account holder can only “choose” from the “menu” of stocks, bonds and mutual funds). funds offered by the company or institution.)

So why limit yourself to just stocks, bonds, and mutual funds as an investment strategy to grow your assets? Should you settle for a 2 or 3% rate of return when you can go as high as 20 or 30%, depending on your risk tolerance? A self-directed IRA allows for an endless variety of asset classes, and the IRS disallows only 3 types of investments: life insurance, collectibles, and S corporations. (Reference: IRS Publication 590)

With optimal diversification and asset reallocation in a self-directed IRA, reaching your retirement goals can truly become a reality.

get tips

“Those who will not be advised cannot be helped.” -Benjamin Franklin. It is imperative that after opening a self-directed IRA, you consult with experts to avoid breaking laws or prohibited transactions related to the use of IRA funds. You would not want to be subject to severe penalties and losses from the IRS due to a lack of education and expert advice.

In every investment portfolio, there should be a good mix of opportunity and risk. If you want to make money, you can’t eliminate all risks; however, the goal is to find an appropriate balance, and each investor should decide their risk tolerance with the help of a trusted financial professional.

Real estate investing, for example, a historically safe and tangible investment, has created significant wealth for investors who understand the risk-return balance of this asset class. With real estate, a self-directed IRA investor has the security of a tangible asset, while investing in a mutual fund may not know “where” their money is actually invested. With your self-directed IRA, you can take control and choose from a wide variety of investments to fill out and grow your retirement portfolio.

Focus

Six steps to building your financial future:

1) Choose a top-tier custodian and open a Self-Directed IRA account 2) Do your homework: continue to educate yourself on Self-Directed IRA investing 3) Get advice on potential investments from your insider (specifically on Self-Directed IRA guidelines and investments) and trusted professionals (CPA, attorney, advisor) 4) Take advantage of higher yield investment opportunities by employing investment growth strategies 5) Capitalize on incredible tax advantages – A key objective of a self-directed IRA is to provide a vehicle for a taxpayer to increase their wealth without being subject to income taxes on gains 6) Be responsible, taking a proactive approach to improving investment returns, taking advantage of a greater variety of investment options

Take responsibility for your financial future

Up to you.

Less than 4% of investors self-direct their investments, are you ready to take an active role?

Taking personal responsibility in planning for your financial future is more important than ever. Think about it. The amount of retirement savings you accumulate will have a direct and dramatic impact on whether you’ll be able to maintain your standard of living when you retire.

To maintain their standard of living, most people will need more than Social Security and their company’s retirement plan. With a self-directed IRA, you have both the privilege and responsibility to make sound financial decisions for your IRA money. However, you must be prepared to educate yourself, enlisting the assistance of knowledgeable and qualified professionals for greater diversification and investment potential.

A self-directed IRA is an extremely valuable tool for building wealth when the guidelines are followed and used efficiently with proper asset allocation. If we stay proactive in educating ourselves about the many options and flexibility we have to grow our retirement dollars, we will reap the benefits and prosper.

Why not take control of your financial destiny? Invest in a brighter tomorrow with a self-directed IRA.