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Investing In Hedge Funds Through a Self-Directed IRA

Investing In Hedge Funds Through a Self-Directed IRA

Investing in hedge funds through a self-directed IRA (SDIRA) is an increasingly popular strategy for those looking to diversify their retirement portfolios with alternative assets. Hedge funds offer opportunities for potentially high returns and risk management strategies that differ from traditional investments like stocks and bonds.

What is a hedge fund?

A hedge fund is a private pool of capital whose managers can buy or sell any assets. The money is pooled from multiple investors and the funds are generally more speculative in nature regarding the assets in which the managers invest. This usually large pool of capital tends to be less regulated than investments like mutual funds.

Hedge fund investors

Investors may be accredited, institutional, or individuals (such as investors with a self-directed IRA). Since the managers have flexibility in terms of the types of assets to include in a fund’s portfolio, including the alternative assets allowed in self-directed IRAs, these are becoming more attractive to more self-directed investors. When the SDIRA makes the investment, the account owner is a passive investor.

Types of hedge funds

There are several types of hedge funds that use various strategies, some designed to reduce portfolio volatility and enhance returns. The most common types are global macro hedge funds, long/short equity hedge funds, relative value hedge funds, and activist hedge funds.
• Global Macro Hedge Funds – Fund managers attempt to invest according to economic and political world events, using derivatives on bonds, currencies, equities, and commodities. These hedge funds differ in the size of the position they take, from bold investments to homing in on smaller increments to (try to) minimize volatility.
• Long/Short Equity Hedge Funds – These fund managers invest in long shares and short shares.
o Long share investment is in companies they feel provide sufficient evidence that they will do well over time.
o Short shares are when managers borrow and sell shares of companies they feel are likely to behave poorly.
• Relative Value Hedge Funds – The fund manager funds companies that are merging (merger arbitrage strategies) or enduring a takeover.
• Activist Hedge Funds – With these funds, the manager has a significant stake in a company and leverages their involvement as motivation for other investors to join.

Using a self-directed IRA to invest in hedge funds

Identify a hedge fund that aligns with your investment goals and philosophy, risk tolerance, and liquidity preferences. Some hedge funds have high minimum investment requirements and some may restrict investments from tax-advantaged accounts, so be sure to do your research and be comfortable with this type of asset.
As part of your due diligence, evaluate the hedge fund’s strategy, past performance, management team, and fee structure, and make sure you understand its lock-up periods and liquidity restrictions.
Once you’ve selected the hedge fund, send the investment instructions to your SDIRA custodian, who will process the necessary paperwork and ensure the investment complies with IRS regulations.
Remember that as with any self-directed investment, investors must avoid making a prohibited transaction (no self-dealing allowed!) to retain the tax-advantaged status of the SDIRA. The investment is made in the name of the IRA, not the account owner.

Benefits of investing in hedge funds through a self-directed IRA

In addition to portfolio diversification:
• your IRA will earn tax-advantaged growth from the fund’s gains
• you’ll have access to unique, somewhat sophisticated investment techniques unavailable in traditional markets, potentially leading to higher returns
• the hedge fund may use strategies designed to hedge against market downturns, which can be beneficial in volatile economic environments.
Self-directed investors know that investing in alternative assets—such as including hedge funds investments in their self-directed IRA—requires careful planning, regulatory compliance, and a deep understanding of the risks involved. At Next Generation, we always recommend that our clients also consult their trusted advisor about how investing in hedge funds may affect their tax or financial situation. And of course, we know that working with a knowledgeable SDIRA custodian and administrator is an important part of using self-direction as a retirement wealth-building strategy. We invite you to learn more by contacting the helpful Next Generation team at 888.857.8058 or NewAccounts@NextGenerationTrust.com.

Including Renewable Energy Investments in a Self-Directed IRA

A self-directed IRA (SDIRA) enables savvy investors to include a broad array of alternative assets within their retirement plan. Among those are renewable energy investments, which are attractive to account owners who want to include green energy assets within their SDIRA.

What is renewable energy?

Renewable energy sources are natural sources and are considered sustainable energy because, unlike fossil fuels (gas, coal, oil), they are replenished more quickly than they are consumed. Solar, wind, geothermal, and water are all able to generate power that does not cause the greenhouse gas emissions (such as CO2) that harm our atmosphere and environment.
Fossil fuels are non-renewable because they form over hundreds of millions of years (so they cannot be replenished at the same rate as the other sources, plus they create harmful emissions when burned).

Renewable energy sources

• Solar – whether the sun is shining or not, solar energy can be harnessed and converted into electricity via solar panels for many applications.
• Wind – large wind turbines on land or offshore holds tremendous potential. According to the United Nations, the world’s technical potential for wind energy exceeds global electricity production.
• Geothermal – this form of energy production extracts heat from the Earth’s interior geothermal reservoirs.
• Water – reservoirs, rivers, and the ocean all provide sources for water-generated power.
o There are two types of hydropower plants: reservoir plants that rely on stored water in a reservoir and run-of-river plants that harness energy from available river flow. Hydropower reservoirs are used to provide drinking water, irrigation, to control floods and drought conditions, navigation, and energy supply.
o Ocean energy is still developing and uses seawater’s kinetic (wave, tidal) and thermal energy to produce heat or electricity.
• Bioenergy – this is produced from biomass derived from organic materials such as charcoal, manure, wood/forestry, or biofuel from agricultural crops. Bioenergy sources generate heat and power but burning them also creates greenhouse gas emissions, although at lower levels than fossil fuels.

Investing in renewable energy sources in a SDIRA

Increasing calls of alarm about climate change have put renewable energy in the investment spotlight. The International Energy Agency’s “Net Zero by 2025” states that investments in renewables will need to triple in the coming years to reach net-zero carbon emissions, making the green energy sector a hot investment.
While anyone can invest in renewable energy sources through stocks and bonds, or mutual funds or exchange-traded funds that include these investments in their baskets, taxpayers with self-directed IRAs can include these alternative assets as direct tax-advantaged investments in additional ways.
Here are some ways to invest in clean energy or sustainable energy sources through a SDIRA:
• Real estate investments in land on which solar farms or wind farms are located
• Private equity funding or private placement in companies that invest in renewable energy commodities (tree farms, wind or solar farms)
• Investing in companies that are developing or manufacturing technologies that support clean energy, from solar panels and wind turbines to products that improve energy efficiency or mitigate carbon emissions

Next Generation is here to help

If you’d like to learn more, contact us today.

Jaime Raskulinecz of Next Generation Trust Company Alerts Family Caregivers About the Importance of Including Caregiving Expenses in Retirement Savings

ROSELAND, NJ, January 24, 2025 /24-7PressRelease/ — Many Americans are already struggling to save for retirement due to the high cost of living. Jaime Raskulinecz, CEO of Next Generation Trust Company, noted that another factor that’s throwing pre-retirees and retirees off their retirement savings target is the cost of family caregiving, which affects 53 million Americans today.

According to a study by the Columbia University Mailman School of Public Health, potential caregiving expenses average $7200 a year, a figure that puts a big dent in many people’s savings.

“The cost of caregiving also affects generational wealth, since the caregiver is less able to manage debt and accrue significant savings for retirement as well as an inheritance,” said Raskulinecz, whose firm provides administration and custodial services for self-directed retirement plans.

The Columbia University study revealed that:

Survey highlights risk of familial caregiving expenses to retirement savings
In a recent blog article on the Next Generation website, Raskulinecz cited results of the Society of Actuaries Research Institute’s biennial Retirement Risk Survey among U.S. retirees and pre-retirees aged 45 to 80 across all income levels. The initial findings showed that middle-aged and older Americans are becoming more aware of the need to financially prepare for unexpected events—and that they’ve been saving less due to the challenges of familial caregiving and inflation. For example, 38% of pre-retirees and 27% of retirees surveyed feel unprepared to take on a family member’s medical emergency or health issue.

The Next Generation article offers suggestions for individuals to prepare for the potential financial impact of family caregiving on their ability to save for retirement and shares information on several bipartisan Congressional bills.

“The Caregiver Financial Relief Act and other legislation aim to reduce the financial burden of family caregiving, and some bills will provide greater flexibility regarding contributions to retirement plans,” said Raskulinecz. “Investors who understand alternative assets can optimize their retirement savings and build a more diverse portfolio by including real estate, precious metals, private equity funding, commodities and more in a self-directed IRA. These and other nontraditional investments also create a hedge against stock market volatility because their returns are not correlated with publicly traded stocks and bonds.”

For more information about self-directed IRAs and other self-directed plans, visit https://www.NextGenerationTrust.com.

(973) 533-1880 x113

About Next Generation
Founded on the philosophy that every person should have control over their retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Services provides comprehensive account administration and transaction support, and its sister company, Next Generation Trust Company, acts as custodian for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or NewAccounts@NextGenerationTrust.com.

Next Step to Amending Retirement Legislation: SECURE 3.0 May Come in 2025

With a new year and new administration comes new legislation, including SECURE 3.0, which is centered on improving retirement plan flexibility and retirement security for more American taxpayers. The bill affects employer-sponsored retirement plans.

Why SECURE 3.0 is being discussed

One driver of this is a new tax bill to be advanced in the Senate, which will give tax cuts to some Americans but also reduce federal tax revenue, with estimates in the $4-5 trillion range. Therefore, Congress is also eying a bipartisan SECURE 3.0 package that is being formulated as “pay-fors” for the tax bill (in other words, providing funds to pay for the revenue shortfall resulting from those tax cuts).

Senators Tim Kaine (D-Va.) and Bill Cassidy (R-La.) are preparing to introduce retirement-related bills in the U.S. Senate that could become part of this legislation. In the House, Representative French Hill (R-Ark.) now leads the House Financial Services Committee and Representative Tim Walberg (R.-Mich.) chairs the House Committee on Education and the Workforce in the 119th Congress—the two committees where retirement legislation begins. In a recent article about this matter, Financial Advisor magazine noted that both congressmen will likely be strong advocates for advancing SECURE 3.0.

Provisions of interest in SECURE 3.0

Retirement security—planning and saving for retirement—are at the heart of the legislation in progress. For example, the Senate bill includes the Helping Young Americans Save for Retirement Act, which would lower the age to participate in a workplace retirement plan from 21 to 18.

According to the U.S. Department of Labor, a plan may require an employee to be at least 21 years old and to have a year of service with the employer before becoming eligible to participate in a plan; however, an employer may allow employees to begin participation before meeting those milestones.

NOTE: This current age restriction applies to SEP IRAs but not to SIMPLE IRAs, Traditional IRAs, or Roth IRAs.

Brad Campbell served under President George W. Bush as assistant secretary for employee benefits security at the U.S. Department of Labor; he was cited in the Financial Advisor article about SECURE 3.0, saying he expects there to be “a renewed focus” on increasing retirement asset portability for workers who participate in employer-sponsored retirement plans.

While it’s too early to know what might be included in this next round, employers and workers should be on the lookout for changes to enrollment mandates, emphasis on state-sponsored IRAs for employees of small businesses, broader investment options, and tax credits for employers—provisions to enhance retirement security for workers and incentives for employers.

Open a self-directed IRA and control your retirement savings

Anyone of any age can open and fund an IRA and get on a path to stronger retirement security, without participating in an employer-sponsored retirement plan. And when you open a self-directed IRA, you open the figurative door to a broad array of alternative assets you can include in that plan. Depending on your income and financial situation, you may have both a workplace plan and an IRA (Traditional or Roth) and contribute to both to the allowed limits to build tax-advantaged retirement savings.

Self-employed individuals can open a self-directed SEP IRA, small employers may opt to offer a self-directed SIMPLE IRA (for themselves and employees), and business owners may also choose a solo(k) that is self-directed, enabling them to build a more diverse retirement portfolio.

If you’d like to learn more, contact us today.

What’s In, What’s Out This Year: Some Regulations About Retirement Plan RMDs are Delayed Until 2026

Final regulations, proposed regulations and how they may affect taxpayers with retirement plans this year and next.

When financial legislation is proposed and before final rules are enacted, there is a period of public comment. The passage of the SECURE Act and SECURE Act 2.0 gave the Internal Revenue Service, the U.S. Department of the Treasury, tax professionals and taxpayers plenty to talk about regarding proposals that affect retirement plans—both employer-sponsored and individual retirement accounts.

Background: updated RMD rules

Updated rules about required minimum distributions (RMDs) from retirement plans were passed as part of the SECURE Act of 2019 and further revised under SECURE Act 2.0 (in 2022). Back in July 2024, the agencies compared the original and subsequent revisions and decided to enact some of them as part of the final regulations while others would be addressed in new proposals. Both categories of changes—the 2024 proposed regulations and 2024 final regulations—were to take effect together on January 1, 2025 so that they would all start applying at the same time.

Commenters pushed back in September 2024, airing concerns about the implementation of the final RMD regulations; retirement plan sponsors and recordkeepers said they’d need more time to implement the changes. The agencies listened and announced in December that several aspects of the RMD rules will not apply until 2026, extending the anticipated effective date of a handful of proposed RMD regulations until January 1, 2026.

Regulations that are delayed until 2026

The covered regulations are included in the Internal Revenue Code sections 1.401(a)(9)-4, 1.401(a)(9)-5, and 1.401(a)(9)-6 and relate to defined contribution plans, defined benefit plans, and annuity contracts.

The proposed regulations affected by this delayed implementation comprise aspects of spousal election, partial annuity, Roth accounts, corrective distributions (for defined benefit and defined contribution plans), and qualified longevity annuity contracts.

Postponed changes at a glance

The following changes are delayed until distribution year 2026, giving plan and IRA sponsors and recordkeepers an extra year to finalize their implementation as they related specifically to these issues.

 

Regulations that took effect on January 1, 2025

NOTE: Given the complex revenue codes and myriad sections contained in each of the codes, taxpayers are wise to consult a trusted advisor or tax professional about how any of these may affect one’s overall financial plan and taxation scenario.

As always, the helpful professionals at Next Generation Trust Company are here to answer your questions related to self-directed IRAs and other plans in which funds may be invested in alternative assets.

Jaime Raskulinecz of Next Generation is Named to the Investment News 2024 Hot List

ROSELAND, NJ, December 23, 2024 /24-7PressRelease/ — Jaime Raskulinecz, CEO of Next Generation Trust Company, has been named to Investment News’ 2024 Hot List of Top Financial Professionals. This is the second year in a row that she has been honored with this award, which recognizes the top financial professionals in the U.S. She is among 97 movers and shakers nationwide whose contributions have helped shape the wealth industry over the past 12 months.

Next Generation specializes in the administration of and asset custody for self-directed IRAs (SDIRAs), HSAs and ESAs. The firm also offers client education about self-direction as a retirement savings strategy, to help more investors diversify their retirement portfolios with assets they already know and understand; these include real estate, precious metals, royalties, private equity funding, commodities and many more. In addition, Next Generation provides education and specialized services to wealth managers and other financial services professionals.

“I am proud of the work we’ve done through the years to help investors broaden their investments—and of the high level of client service our team delivers,” said Raskulinecz, who founded Next Generation over 20 years ago. The impetus behind that was the lack of financial services companies at the time that specialized in working with investors—like herself—who wanted to include alternative assets within their IRAs, which typically are limited to stocks, bonds and mutual funds.

Raskulinecz has won multiple awards throughout her career for entrepreneurship and business leadership. Next Generation has also been recognized numerous times for its growth and contributions to the financial industry and regional business landscape.

More information about Raskulinecz, her team, and the many options and benefits associated with self-directed retirement plans is at https://www.NextGenerationTrust.com.

About Next Generation
Founded on the philosophy that every person should have control over their retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Services provides comprehensive account administration and transaction support, and its sister company, Next Generation Trust Company, acts as custodian for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or NewAccounts@NextGenerationTrust.com.

Retirement readiness – Include preparing for family caregiving expenses

Many Americans are already struggling to save for retirement due to the high cost of living. Another factor that’s throwing pre-retirees and retirees off their retirement savings target is the cost of family caregiving, which affects 53 million Americans today.
According to a study by the Columbia University Mailman School of Public Health, potential caregiving expenses average $7200 a year, a figure that puts a big dent in many people’s savings. The study also revealed:
• Caregivers who begin their duties at a younger age risk an average 40% to 90% deficit in retirement savings by age 65, depending on salary, compared to non-caregivers (due to reallocating retirement contributions toward caregiving costs).
o If someone earning $50,000 a year begins caregiving at age 35, that individual will see a 107.8% retirement savings deficit at 65 years old.
o For those earning $75,000 a year, the gap is 60.4% gap and for those making $100,000 a year, the deficit is 46.9% deficit.
• This deficit is equivalent to another seven to 21 years of work to recover the savings loss.

The cost of caregiving also affects generational wealth, since the caregiver is less able to manage debt and accrue significant savings—for retirement as well as an inheritance.

The Society of Actuaries (SOA) Research Institute’s biennial Retirement Risk Survey gathered insights from U.S. retirees and pre-retirees aged 45 to 80 across all income levels. Among the initial findings are middle-aged and older Americans’ growing awareness of the need to financially prepare for unexpected events—and the decrease in amount they’ve been able to save due to the challenges of familial caregiving and inflation/cost of living.
The survey also revealed that beyond the financial impact of caregiving:

• Male and female pre-retirees (36% and 26% respectively) and female retirees (35%) cited the emotional and/or physical toll.
• Male retirees (14%) cited long-term care planning as the impact of caregiving.
• Among pre-retirees, 38% feel unprepared to take on a family member’s medical emergency or health issue; 27% of retirees expressed the same.
• More pre-retirees have adjusted their savings strategies due to inflation, especially for individuals who earn less than $100,000 a year.

Plan now for caregiving expenses during retirement

1) If you are financially able to do so, build up a savings cushion in a liquid account in addition to funding your IRA or workplace retirement plan. Putting aside one to three years’ worth of living expenses in an accessible account will provide an important buffer to help prevent retirement account drainage
2) Create a sustainable budget and develop a retirement roadmap with your trusted advisor that protects your assets as much as possible. Factor caregiving costs into your financial plan along with your own healthcare, housing, and other essential expenses.
3) Explore long-term care options and the associated expenses for yourself and your loved ones.
4) Take advantage of catchup contributions to your retirement plan if you qualify (based on age).
5) Many financial experts recommend contributing 10-20% of your salary for retirement. If you have a self-directed IRA, continue to diversify your portfolio with alternative assets whose performance is not correlated with the (volatile) stock market.

Legislation to ease the caregiving financial burden

Nearly 25% of all adults and more than half of people in their 40s support at least one child and at least one parent over age 65. Plus:

• By 2030, all baby boomers will be 65 or older (20% of the U.S. population).
• The U.S. Census Bureau projects that by 2034, there will be more people over age 65 than under 18—the first time ever.

The greying of America will likely bring an increase in family caregiving. Rep. Josh Gottheimer (D-NJ) and Rep. Mike Lawler (R-NY) are cosponsoring a bipartisan Caregiver Financial Relief Act that aims to ease the financial burden by waiving early withdrawal penalties from retirement accounts for family caregiving expenses. There are other bipartisan bills working their way through Congress.

• Credit for Caring Act – allows working family caregivers to turn up to 30% of their family caregiving expenses into a tax credit (up to $5000 a year).
• Improving Retirement Security for Family Caregivers Act – permits family caregivers to contribute up to $7,000 annually to a Roth IRA, regardless of income level and even if not working full time.
• Lowering Costs for Caregivers Act – allows funds in flexible spending, health savings, and medical savings accounts to be used toward a loved one’s medical expenses.
• Catching Up Family Caregivers Act of 2024 – allows qualified family caregivers to make catch-up contributions to a retirement account for up to five years.
• Expanding Access to Retirement Savings for Caregivers Act – allows workers who left the workforce to provide dependent care services to make catch-up contributions to their retirement accounts before reaching age 50.

Shore up retirement savings with a self-directed IRA

We all want our retirement years to be ones of ease and enjoyment—without dealing with the financial cost of family caregiving. You can optimize your retirement savings by including alternative assets in a self-directed IRA (SDIRA).

Rather than rely on unpredictable stock market performance (and deal with that roller coaster), the alternative assets allowed in a SDIRA are generally longer term, illiquid investments that build portfolio diversity and a hedge against stock market volatility. If you already know and understand these nontraditional investments (such as real estate, precious metals, private equity funding, commodities, and many more), consider bolstering your financial future by opening a new SDIRA.

Need more information? Contact us today.

Taking Stock of Your Retirement Finances: Steps for a Successful New Year

As we approach 2025, it’s a perfect time to take stock of your finances, reassess your retirement plan, and evaluate your investments. Doing this annual financial check-in can ensure you’re on track to meet your retirement savings goals and make the most of your resources. Here are some steps to take (in between those holiday parties and the gift wrapping) to put your finances on solid footing for 2025.

1. Review Your Financial Goals

Whether saving for retirement is top of the list or other lifestyle objectives take precedent (such as saving for a home, planning a big vacation, or helping your adult kids with major expenses), make your financial goals specific, measurable, achievable, relevant, and time bound. Adjust them as necessary to reflect any changes in your life or priorities.

2. Check Your Credit Report

Don’t get caught by a nasty surprise that affects your credit rating! Obtain a free copy of your credit report from Equifax, Experian, and TransUnion and look for any errors or discrepancies. Credit scores determine the interest rates you are offered or qualify for, fir everything from credit cards to mortgages to auto loans.

3. Assess Your Budget

Creating a yearly budget is always helpful, especially as you are near retirement or are already retired and have a more fixed income. Review your income and expenses over the past year and identify areas that will change (up or down), see where you can cut back if necessary to stay within budget, and assess how much income you can put toward your retirement savings. Speaking of which…

4. Evaluate Your Retirement Plan

Retirement planning is a long-term commitment. Review your self-directed IRA (SDIRA) or solo (k) plan, or your employer-sponsored plan to make sure you’re contributing enough to meet your retirement goals. Consult your trusted advisor to ensure your retirement strategy aligns with your current and future needs.
If you know and understand alternative assets—and want to include them in their retirement portfolio—that evaluation may include opening a new self-directed IRA.

5. Analyze Your Investments

Evaluate your portfolio to see how your investments are performing and diversify to mitigate risks and optimize returns. Adjust your asset allocation based on your risk tolerance and financial goals.
One (big) benefit of investing in alternative assets—such as real estate, precious metals, commodities, private equity funding, and royalties (to name a few) is that these provide valuable portfolio diversification. And, because their performance is not tied to the stock market, they also provide a hedge against market volatility and inflation. Remember that alternative assets are generally long-term, illiquid investments, so make sure the nontraditional investments in your self-directed IRA are in line with your “retirement runway.”
If you have questions about the many alternative assets allowed in self-directed retirement plans, you can always contact the team Next Generation Trust Company or sign up for one of our educational events (or watch our webinars about alternative asset investing and various retirement plan topics on demand).

6. Set Up Automatic Contributions

Deploy this New Year resolution to pay yourself first and avoid the spending temptation. Automatic contributions to your retirement plan or savings accounts ensure they are funded on a regular basis and help you stick to your financial goals.

7. Plan for Taxes

Tax planning can save you a significant amount of money. Review your tax situation and look for opportunities to reduce your tax liability. Contributions to tax-advantaged health savings accounts (HSAs) or education savings accounts (ESAs) can be part of your overall tax AND savings strategies. Also make sure that any distributions you take do not trigger an unanticipated tax event (or be prepared to pay any taxes and/or penalties based on early or other distributions outside of RMDs). Keep abreast of any changes in tax laws that may affect your financial situation.

8. Update Your Insurance Coverage

Do you review your insurance policy renewal documents when they arrive, or do you shove them into a file with just a glance? Read all your policies—health, auto, home, and life insurance—to make sure you have adequate coverage to protect yourself and your loved ones. Make coverage adjustments as needed to reflect changes in your circumstances.

9. Create or Update Your Estate Plan

Anyone with assets should have an estate plan in place to ensure those assets are distributed according to your wishes. Review and update your will, trust, and beneficiary designations (and make sure we have your current beneficiaries designated on your SDIRA documents). Life circumstances and financial scenarios change over time, so you want all your legal documents, including estate planning tools, up to date.

10. Track Your Financial Progress

From monthly statements from your IRA custodian to semi-annual meetings with your advisor, stay on top of your budget, retirement savings, and investment performance and make course corrections as needed to align with market trends or shifts in your retirement goals.

One more step toward a successful 2025: a SDIRA with Next Generation Trust Company
Are you getting the white glove service you deserve from your current self-directed IRA custodian? Is your custodian available to answer your questions and provide client education about alternative assets and self-directed investing?
As a full-service administrator and custodian for SDIRAs, Next Generation has our clients’ best interests at the forefront of what we do. We have 20 years of experience in the self-directed IRA field and are proud of the high level of client service we provide, every day. If you’re looking to make a switch in the coming year, contact us to discuss your needs: NewAccounts@NextGenerationTrust.com or 888.857-8058.

Jaime Raskulinecz of Next Generation, a Firm Specializing in Self-Directed IRAs, Shares Statistics and Insights Regarding Gen X Savers and Retirement Readiness

ROSELAND, NJ, November 23, 2024 /24-7PressRelease/ — In a recent article, Jaime Raskulinecz, CEO of Next Generation Trust Company, outlined chief concerns among Gen X members about their retirement readiness. This cohort, born between 1965 and 1980, might delay their retirement or continue working in some capacity through their retirement years according to insights cited in the article.

“Between lingering student debt, mortgage payments, credit card debt, the dot-com bubble burst, multiple stock market downturns and the financial fallout of the COVID-19 pandemic, many Gen Xers have underfunded retirement plans—or none at all, even though they are doing relatively well financially as a group,” said Raskulinecz. “Other life issues such as caregiving for aging parents, supporting grown children and the cost of health care for seniors all add to their concern about their lack of retirement savings.”

Next Generation specializes in the administration of and asset custody for self-directed retirement plans. These plans allow investors—who make all their own investment decisions—to diversify their retirement portfolios with a broad array of alternative assets such as real estate, precious metals, royalties, private equity funding, commodities, and many more.

Surveys and reports shed light on Gen X lack of retirement readiness

The article includes insights from a Wealth Watch survey, the 2024 Annual Retirement Study from Allianz Life Insurance Company of North America, the 2024 Transamerica Retirement Survey of Workers and the 2024 BlackRock Read on Retirement report. Among the results were:

Self-direction as a retirement strategy

Raskulinecz noted that anyone with earned income can open a self-directed IRA and boost their retirement savings with nontraditional investments they already know and understand. Since alternative assets’ returns are not correlated with stock market performance, this strategy enables account owners to build a tax-advantaged hedge against stock market volatility and take advantage of investing opportunities more nimbly to meet retirement goals.

Read the full article about Gen X retirement readiness on the Next Generation blog. More information about self-direction as a retirement wealth-building strategy and about Next Generation is at www.NextGenerationTrust.com.

About Next Generation

Founded on the philosophy that every person should have control over their retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Services provides comprehensive account administration and transaction support, and its sister company, Next Generation Trust Company, acts as custodian for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or NewAccounts@NextGenerationTrust.com.