Friday, December 1

The Benefits Of A Self-Directed Retirement Plan

After a successful and prosperous working life, it’s finally time for you to retire and take some much-needed rest. But before retiring, it is wise to plan early and make some important decisions, especially when it comes to your assets and making more investments.

Luckily for you, there are a host of options for you to choose from and all geared to ensuring that your hard-earned savings are invested safely and in the right manner to maximize your return on investment. One of these options is a self-directed retirement plan.

What is a self-directed retirement plan, you might ask?

This is an individual retirement plan that gives you the freedom to invest and manage all the assets therein your way as you deem fit. Now, that’s a plan worth investing in, don’t you think?

So, back to the benefits of self-directed retirement plans, they include:

More Control Equals More Power

There’s no better person to be in charge of your retirement, any plans that come with it, or your financial future better than you can. After all, it’s your retirement. Having a self-directed plan gives you direct control of your investments, plans, and finances, even though you’ll still be required to have a custodian, you will still be able to direct your investments where they need to be.

This way, you can utilize any financial and investment knowledge you might have picked up over the years to your advantage. In line with the guys at, you get to pick the industry in which to invest in and concentrate. Also, you get to save up for the various dreams of your lifetime with accounts that necessitate for exactly this. To ensure diversification and distribution, choose multiple industries that you consider profitable to ensure better returns.

Versatility In Investments

Having your plans laid out means that you get to choose what to do with your money. Imagine relaxing in your favorite reclining seat, hammock, and with a click of a button, you can make some investments that will not only give you back some retirement profits, but also the satisfaction that you made the right choices in your working days.

Having a self-directed plan gives you the freedom to pick multiple niches in which you can invest in. You don’t have to follow any set of rules or specific areas of investments. Use this freedom and invest in as many industries as you can to ensure the maximum wealth creation and returns. However, having a financial advisor to help you make all the right decisions could mean the difference between success and wrong life choices.

Guard Your Investments Against An Economic Oscillation

If there are any important lessons the recent economic breakdowns have taught you, is to never place all your eggs in one basket.  The same goes for having a retirement plan. If you don’t have a plan that involves multiple sources of income, then it’s about time you started drawing one.

You have a lot of industries to choose from such as bonds, real estate, LLCs, even farming just to mention a few. You don’t have to put all your money in one industry. Distribute your earnings so that in the unfortunate event one industry is hit by an economic breakdown, you still get to earn from the other ongoing and successful investments.

Freedom From The Taxman’s Noose

According to the taxman, any earnings that come from a self-directed retirement plan are not taxed. Also, these earnings aren’t combined with any others, such as pension or any taxable incomes. So, relax, the taxman also realizes the importance of your retirement plan. To fully utilize this perk, reinvest these earnings back into the same retirement plan, and over time, you’ll have accumulated desirable wealth.

This gives you more reasons to have a self-directed plan early enough so that when retirement finally arrives, all that remains will be the precise execution towards making your retirement days a walk in the park – literally.

No Delays In Investment Returns

With you at the driver’s seat of the planning wagon, you can move at your speed and direction. More often than not, having brokerage firms to make a plan for you or invest for you can move at a slower pace or direction that doesn’t suit you. Having direct control over your plan and finances gives you the authority to make all the decisions while at the same time, making decisions that suit your needs best. 

Also, some of these brokerage firms can hide behind a cloak of self-directed retirement planning plans, but will not give you options other than stocks, bonds, and mutual trusts. Make sure that before you make any investments, to seek some professional advice from your custodian, close retired friends, or financial advisors.

These benefits are valid reasons that should convince you of the importance of having a self-directed retirement plan. Even though it’s your retirement and your plan, it’s wise to carry out extensive research before choosing a reliable custodian, either online or by consulting a financial expert or legal counsel. It’s time to retire, so take control of your plan. 

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