A Retirement State of Mind

Published on August 2, 2016

With many companies foregoing offering their employees retirement plans, many states are taking it upon themselves to fill in the foreseeable financial gap. In fact, four states—California, Illinois, Oregon and Washington—have passed laws paving the way to offer state-run retirement plans, and 18 additional states are considering such a measure.

According to Richard Hiller, senior vice president and head of national government and religious markets at TIAA-CREF in Denver, states are jumping on the bandwagon to offer retirement plans because the “the number of people in the workforce not covered by any retirement plan is pretty staggering—around 50 percent.”

Mix and match

USDOL_Seal_circa_2015.svgOn paper the Department of Labor (DOL) proposed rules for state-run plans sound good; however, industry trade groups like the Investment Company Institute (ICI) raise a number of issues with this approach. They argue that such plans will create an unlevel playing field between states and the private sector as well as the potential to create different rules for different states.

What’s an individual planning for retirement to do? Carpe diem … and take control with a self-directed retirement plan.


Peaceful state

linked in eggsTo prepare for a happy and secure retirement, everyone should get with the program and start building up their nest eggs by funding a retirement plan (Traditional or Roth IRA) as often and as much as possible. Financially savvy investors can boost themselves into a better state of retirement income by self-directing their retirement plan.

For those who understand nontraditional investment options, a self-directed IRA can be a great way to build retirement wealth more aggressively. This investment vehicle allows individuals to include alternative assets they already know and understand, but which are prohibited in typical retirement plans. These include real estate, mortgages, loans, private hedge funds, precious metals, limited partnerships, commercial paper, and more.

Self-directed IRAs can provide informed investors the ability to develop a more diversified portfolio that they control. A self-directed retirement plan allows the individual to respond to economic downturns or take advantage of opportunistic (and tax-advantaged) investments with greater flexibility. The administrator of these plans—like Next Generation Trust Services— handles all the details of the transactions, holds the assets, and manages all account administration and paperwork.

At Next Generation, our professionals are available to answer questions about self-directed retirement plans and our transaction specialists ensure you are investing within IRS guidelines. Since we do not give investment advice, we strongly recommend you consult your trusted financial advisors about your investments and any tax implications they have for your unique situation.

Want to put your retirement plan in a better state? Contact Next Generation at 888.857.8058 or Info@NextGenerationTrust.com, or read through our Starter Kits for more information.


self directed IRA