How Do you Plan to Retire?

Published on June 20, 2017

More to the point, what are you doing now to create that comfortable retirement?

Retiring with plenty of money to live on takes a lot of planning and disciplined saving, starting as early as possible (yes, 20- and 30-somethings, we’re talking to you!). You can always open a savings account or go to a brokerage house and set up a retirement account there; or, you can start investing in an employer-sponsored 401(k) if there is one offered. All good ideas … but there are some decisions to make sooner than later.

Will you be thrifty or a spendthrift?
Even those who’ve saved well and often throughout their work lives may not have enough to live a lifestyle of the rich and famous—especially when you figure that those retirement years could be several decades due to longer lifespans today. Saving enough money (wisely invested to grow) to support you for 20 or 30 years requires a robust retirement account or other income source. So, decide early on what kind of lifestyle you’d like (traveling the world or watching the world from your porch), check the online retirement calculators often to see if you’re on track to meet your financial goals, and consult a trusted financial advisor to develop a plan that makes sense for you.

Will you stay in your home or downsize?
If you’re someone who ended up in a larger home than when you began working, for whatever reason, you may find that it’s too large or too expensive for you to maintain in your later years. Real estate taxes and the cost of living might have risen to become unaffordable in your area, or perhaps once the kids are gone, you’d like to move to another community (or region of the country) or different type of housing arrangement. If you think you’ll be downsizing—and getting rid of a lot of accumulated possessions—you’ll have decisions to make that will affect your retirement finances and available cash.

Will you self-direct your retirement account?
Self-direction isn’t for everyone—but for savvy investors who know and understand various nontraditional investments (outside of money market funds, stocks and bonds), self-direction can be a great way to build a more eclectic and potentially more lucrative retirement portfolio.

Self-directed investors make all their own investment decisions and can include a broad array of alternative assets within their plans. Do you already invest in rental property? You can include that in your self-directed IRA. Do you have enough money saved up to make a loan to someone, with interest? You can make unsecured and secured loans from a self-directed retirement plan. Other types of assets include precious metals, private placements, commodities, shares in theatrical productions … the list goes on.

The financial decisions you make now will determine the type of retirement lifestyle you end up having. By self-directing your retirement plan, you aren’t stuck with what the stock market or bond market has available. Rather, you can take control of your future, today and include the types of assets you might already be investing in outside of your existing retirement plan. Think about it as you think about the type of retirement you’d like to have decades from now.

Then, contact us with your questions about this retirement strategy, or go straight to our Starter Kits to open your self-directed IRA. We’ve available at 888.857-8058 if you need help with the paperwork or need to understand more about the many options with self-direction.