Gen Xers Worries About Retirement – a Self-Directed IRA Can Help

Published on May 8, 2018

What Gen Xers Worry About for Their Retirement
and How a Self-Directed IRA Can Help

A survey conducted by the Insured Retirement Institute (IRI) among 802 Gen X Americans (ages 36-55) revealed that among those who have been doing retirement planning with their advisors, some have serious concerns about their income and expenses for retirement. Three challenges were brought to light that are worrying these adults regarding their ability to cover basic post-retirement expenses. While there are several options to save for these expenses, a self-directed IRA can boost those savings in more diversified ways. But first, a look at those concerns.

Three challenges for Gen Xers’ retirement savings

1. Long-term care expenses were at the top of the IRI survey list. Only 63 percent of Gen Xers with financial advisors (which, by the way, represented only 20 percent of the respondents) said they were somewhat or very confident about having enough money to pay their long-term care bills.

2. Another related area of concern was how to help out mom and dad with their long-term care bills; 53 percent of respondents with advisors reported being somewhat or very confident about being able to help. But what about the other 47 percent?

3. Aside from those healthcare costs, paying for their children’s college bills was the third challenge reported by Gen Xers. Although many financial professionals and consumer finance experts recommend putting retirement planning first, parents are still concerned about where that college money will come from. According to the IRI survey, only 51 percent of respondents with advisors said they were somewhat or very confident that they will have the funds to cover those higher education expenses.

Meeting the challenge with a self-directed IRA

A self-directed retirement plan allows you to include a broad array of alternative assets that are not allowed by typical broker-dealers, banks or other custodians. These retirement plans enable you to build a much more diversified retirement portfolio by investing in what you already know and understand. In addition to IRAs, you can also self-direct Coverdell Education Savings Accounts (ESAs) which provide tax free savings for children’s education expenses (including college).

Are you a Gen Xer who’s ready to take the worry out of your retirement planning? Read more about self-direction as a retirement wealth-building strategy in our white paper library or check out our informative videos. You can also go straight to our Starter Kits to open a self-directed IRA or contact the professionals at Next Generation at Info@NextGenerationTrust.com or 1-888-857-8058 with your questions.