Americans are Underutilizing IRAs
Published on August 30, 2016
Raise your hands if you took a course in high school or college about IRAs and saving for retirement.
We thought so.
There is a keen need in the United States for more education on the importance of saving for retirement and on retirement plans, especially among young workers; 35 percent of millennials say they don’t know enough about these accounts to consider using one, according to a TIAA survey released Wednesday.
We’ve written many times about Americans’ lack of retirement savings and lack of good savings habits. This was reflected in another result of the survey: 41 percent of people of all ages said they don’t use an IRA but would consider doing so as part of their retirement strategy, down from 56 percent in 2015. A major reason cited was that they believe they don’t have enough money to save any more than they
already do. What they don’t realize—and why some education is needed—is that they could contribute very small amounts and over time, allow their investment to grow.
That said, it seems that among the respondents of this survey, spending habits are partly to blame. Thirty percent of them said that if they were offered $5000 to spend or invest, they would spend the money on home renovations, a vacation, technology upgrades or a shopping spree. Only six percent said they would contribute the money to an IRA.
Are you utilizing a self-directed retirement plan?
Savvy investors know that investing in alternative assets through a self-directed retirement plan can help them grow a more eclectic and potentially more lucrative retirement portfolio … and that consistently funding their self-directed IRA is a smart habit to attain. Whether funding the plan for future real estate, precious metal or commodity investments, or to include loans, private placements or hedge funds, self-directing one’s retirement is a great way to take control of your retirement goals.
Need some education about self-direction as a retirement strategy? Our website has load of helpful information to get you started and in the know, and the helpful professionals at Next Generation Trust Services will answer your questions and handle your transactions with expertise and efficiency. Contact our office at Info@NextGenerationTrust.com or 888.857.8058.
Want to know more? Check out this link or watch our informative videos. You can also download our free white paper that gives you the inside scoop on how to use self-direction to build your retirement nest egg, using nontraditional investments you already know and understand.