Starting May 28th, through September 3rd, the Next Generation office will close at 3:30pm ET on Fridays.

For Financial Professionals

Self-Directed Retirement Plans

Self-Directed Retirement Plans for You and/or Your Clients

As a financial professional or attorney, you might get questions from clients who are interested in using their retirement funds to invest in alternative assets through a self-directed IRA. Maybe they want to transfer funds from an existing IRA, or perhaps they have an old 401(k) to roll over from — you may even want to do this for yourself. Here at Next Generation, we educate investors and their trusted professionals so that you can better understand self-direction and its benefits, and be able to knowledgeably pass that information to your clients to help them make informed decisions about building retirement wealth more aggressively.

If you’re an independent, fee-based financial advisor, you can even earn more fees on any assets we hold for your clients — all the more reason to stay educated and informed on the subject of self-directed IRAs.

What You Need to Know

Unlike typical IRAs, self-directed retirement plans allow for many nontraditional investments such as real estate, private equity, notes, precious metals, and more. Often times, these are the types of investments that you or your clients know and understand best. These types of plans allow you to choose the investment types you want, and offer tax-deferred and/or tax-free returns, which is less restrictive than most IRAs and 401(k) plans.

Savvy investors may choose to open a self-directed IRA because of the potential to hedge against stock market volatility and build a secure financial future through a more diverse retirement portfolio.

Expand Your Clients’ Investment Horizons

With a self-directed IRA, clients truly manage their own investments and control their retirement savings strategy with a variety of nontraditional investments they know and understand. In fact, your clients might already be investing in these alternatives outside of their existing retirement plans.

The tax advantages offered through self-directed IRAs could make this a compelling strategy for individuals who are interested in:

  • Real estate: commercial or residential properties (U.S. and internationally), rental property, renovations, new construction, farmland, raw land, foreclosures, and more
  • Other private equity in a privately held company or startup
  • Precious metals such as gold or silver— held off-site in a qualified depository
  • Mortgages
  • Secured/Unsecured loans (promissory notes)
  • Business investments: partnerships, joint ventures, private stock, and syndications
  • Hedge funds
  • Lease options
  • Commercial paper and notes
  • Foreign stock
  • Equipment leases

Comprehensive Account Administration

Next Generation is a custodian and administrator of self-directed retirement plans; as such, our representatives will handle all of the necessary onboarding, record-keeping, paperwork, and tax reporting so your clients can invest safely and securely. By referring your clients to Next Generation for their self-directed IRAs, you can strengthen your relationship and deepen client confidence, knowing their assets are being properly managed and their accounts fully administered by experienced professionals.

If you are interested in broadening your clients’ investment horizons through self-directed retirement plans, or are considering opening a self-directed retirement account or IRA as part of your own investment strategy, contact us or register for a complimentary educational session!