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Self Directed IRA Articles

7 Easy Ways to Build Retirement Wealth the Right Way

Posted by Jack Callahan on May 23, 2018 8:00:00 AM

In 2017, the stock market boomed as our country enjoyed encouraging economic growth and sizeable corporate profits. So far in 2018, stocks are continuing to perform well, hopefully adding much-needed funds to your retirement account. Another year to achieve desired returns in your IRA. Another year closer to the day you walk out of that office door for the very last time. Right?

Not to rain on your parade, but it wasn’t that long ago that the Great Recession sent most retirement accounts into a tailspin that many are still trying to recover from today. And, with ever-changing world economic policies, we see the stock market fluctuate with the news of the day, and we all hang on for the ride.shutterstock_1055487410-468020-edited

So, before you get too complacent, we have two questions for you—is your retirement portfolio diversified enough to survive a significant dip in the economy? If your stock value took a nose dive, what is your backup plan?

Tangible assets, like real estate or gold, can help balance market losses and protect your retirement savings.

One key factor in surviving an unpredictable stock market is diversification. 

As a self-directed retirement plan administrator, Advanta IRA is serious about retirement planning. Our clients diversify their portfolios with variety of options from an asset class called alternative investments. We have seen what happens when people put too much of their money into one type of investment. Our clients have seen it, too, and are savvy enough to know that diversity is key to their peace of mind and to help secure adequate retirement funds.

Here’s part of the problem…

Due to volatility in the stock market and a loss in pension plans that they counted on, many Baby Boomers have been unsuccessfully trying to retire without working. Generation X-ers are currently sandwiched between taking care of their aging parents and their children. According to TransAmerica’s 18th Annual Retirement Survey for Workers:

  • Only 39% of Baby Boomers expect their primary source to be self-funded accounts, and 54% plan to continue working after they retire.
  • Meanwhile, 80% of Generation X-ers are saving for retirement, but a concerning 34% have taken a loan against their retirement account, or withdrawn from it, and only 14% are very confident that they will be able to retire comfortably.
  • Millennials seem to get it, because 71% of are already saving for retirement. One of the reasons is that they don’t believe Social Security will be around when they retire. Considering that a great number of them plan to live to be 90 years old, this will test their saving skills as well.

Regardless of your current position, all of us should actively participate in retirement planning. The good news is that you can start NOW with investments in a self-directed IRA to make up lost ground and get yourself in good shape for retirement.

Tips to Build Wealth and Retire Well:

  1. Make a budget and stick to it. If you spend more than you make, reduce your credit card expenses. Attend a class (or two or three) on living within your means.
  1. Start saving now. You can always think of reasons to put off saving, but none are good. Saving something is better than nothing at all. And, as we all know, the younger you start, the better. Use this retirement calculator to help determine how much you need to save to retire in comfort.
  1. Education is key. Evaluate your current financial status and determine where you stand. This helps you calculate your financial freedom number and creates a starting point for how to reach that goal. Part of this includes understanding your investments. If you don’t keep track of the market or you don’t know the options that are out there, find an educated, trusted financial advisor to talk to.
  1. Take advantage of employer 401k matching programs. If your employer matches contributions, they are giving you free money towards retirement. Why would you turn that down?
  2. Self-employed without an employer-sponsored plan? Open an IRA and start contributing. Make a commitment to contribute as much as you can, as often as you can.
  3. Diversify your portfolio. Remember that Great Recession we were talking about earlier? Wall Street is not always your friend, so, don’t put all of your hard-earned savings into the stock market.

Our favorite tip deserves a line of its own:

  1. Check out self-directed IRAs to achieve stronger balance in your retirement savings.

It’s important to invest in a variety of options including stocks, mutual funds, gold, private lending, and real estate. If your current broker doesn’t offer you the opportunity to expand your portfolio, reach out to someone who does. A self-directed IRA allows you the freedom to invest in alternative assets that can potentially earn a higher rate of interest than traditional methods. Alternative investments include real estate, private lending, cryptocurrency, private equity, and more.

So, while the stock market might be soaring today, learn from the past and don’t put all of your “nest” eggs in one basket.

Contact Advanta IRA today to explore a wide world of options that can help you achieve diversity in your retirement portfolio. We are a trusted self-directed IRA administrator with years of experience in alternative investments, providing administration for over a billion dollars in assets. Become a part of the Advanta family where our clients are investing in commercial and residential real estate, tax liens and deeds, cryptocurrency, private equity, and much more to grow wealth for retirement.

We offer free educational tools, webinars, and seminars to help others learn the power and flexibility self-directed plans present. And, we are always happy to discuss self-directed accounts with individuals seeking financial freedom in retirement.

 

Topics: financial freedom, Self-Directed IRA, Retirement Planning