After the Financial Storm, Generation X Must Recommit to Retirement Investing
Published on August 12, 2014
For Generation-Xers, who have had to weather the biggest economic downturn since the Great Depression, the housing market collapse, and a difficult job market, saving for retirement may not be high up on their “To Do” list but they are anxious about their future. In fact, according to the Pew Research Center 2012 survey, 44 percent of Gen-Xers are concerned about whether they’ll have enough money for their retirement.
The fact is, the financial obstacles dodged by Gen-Xers (people born between the mid-1960s and 1980s) have left many pessimistic about a happily-ever-after retirement. And, some of these Gen-Xers do have cause for concern. For instance, even though most in this age group earn more than their folks did at the same age, the Pew Economic Mobility survey found that only one-third of these households are actually wealthier than their parents. This downward mobility can be attributed in part to the hit that Gen-Xers took during the recent economic crisis, where many lost about half of their wealth.
If Gen-Xers don’t move retirement funding to the top of their “To Do” list, they will have less money to spend during retirement and more time to spend it. (Gen-Xers have a longer life expectancy than the current generation of retirees.) This is not a nice to do but makes retirement saving a need to do. And, there is still time to prepare for a happy and secure retirement.
Getting back on track
Although funds may be tight, financially savvy investors can get with the program by funding a retirement plan as often and with as many resources as possible. And, for those who understand alternative investment options, a self-directed IRA can be a good way to build retirement wealth more aggressively. A self-directed retirement plan allows individuals to invest in nontraditional assets not allowed within typical retirement plans; these alternative assets include real estate, mortgages, unsecured loans, private hedge funds, precious metals, limited partnerships, commercial paper and notes and more to bolster their retirement efforts.
With a self-directed retirement plan, informed investors have the ability to develop a diversified portfolio that they control. Individuals can respond to economic downturns or take advantage of opportunistic (and tax-advantaged) investments with greater flexibility. A self-directed IRA administrator like Next Generation Trust Services handles all the details of the transactions and manages all the paperwork and filing.
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.
What are you waiting for? Check that item off your “To Do” list. Contact Next Generation at (888) 857-8058 or Info@NextGenerationTrust.com, or read through our Starter Kits for more information.