Pave A Strong Yellow Brick Road to Retirement

Published on June 17, 2014

and we’ll say it again—Americans are not saving enough for their retirement.

Retirement concerns as employees age are many: More than half of all mid-career and older employees (53%) are concerned they will not be able to afford the health care they need in retirement; 83% believe Social Security will be less valuable in the future and 88% have comparable fears about Medicare.

For those seeking advice on how to catch up on retirement savings or get off to a good start, William J. Bernstein, an investment adviser and author on financial subjects, offers this simple advice on what millennials can do now in his e-book, “If You Can: How Millennials Can Get Rich Slowly”:

  • Start by saving early (25 is not too early)
  • Put 15% of your salary into a 401K, IRA or taxable account
  • Pay yourself first. (See above.) Have you put that 15% of your salary for retirement away? If not, reduce your daily spending. Is that daily coffee purchase worth jeopardizing your retirement? Do you really need all those cable boxes?
  • Get an adequate understanding of finance. No, you don’t need to become an investment adviser yourself but learn the basics. For instance, know the difference between a stock and bond and why having both in your retirement plan is important.
  • Maintain a strict discipline to saving for your retirement. Know yourself. For some, an automatic deposit from paycheck to retirement plan is the way to go. It happens without you having to remember to do a thing. For others who are already investing in alternative assets such as real estate or precious metals, you can make these investments in a self-directed retirement plan as part of your retirement strategy.

How will your retirement path be paved? Millennials take heed: Start putting enough money away now and invest it wisely so your future will be secure.

Start paving your way through self-direction

To prepare for a happy and secure retirement, everyone that’s working should use the time now to build up their nest egg by funding a retirement plan as often and as much as possible. Like Mr. Bernstein counsels in his guide to millennials, if you start now and your end goal should be solid gold.

For individuals who understand alternative investment options, a self-directed IRA can be a great way to build retirement wealth more aggressively. Self-directed IRAs may include many nontraditional assets not allowed within typical retirement plans such as real estate, mortgages, unsecured loans, private hedge funds, precious metals, limited partnerships, commercial paper and much more.

Self-directed IRAs can provide savvy investors the ability to develop a more diversified portfolio that they control. The self-directed IRA administrator like Next Generation Trust Services handles all the details of the transactions and holds the assets.

At Next Generation, our transaction specialists ensure you are investing within IRS guidelines. Since we do not give investment advice, we strongly recommend you consult your trusted financial advisors about your investments and any tax implications they have for your unique situation. We’re here to answer any questions you have about self-direction.

Have a question now? Contact Next Generation at (888) 857-8058 or, or read through our Starter Kits for more information.

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