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Are You Approaching Retirement? Consider Speeding Up Your Savings Through Self-Direction

Published on May 6, 2021

The U.S. Census Bureau has reported that more than 3.1 million Americans age 55 or older have retirement income on their minds. The bureau’s Household Pulse survey, conducted between March 3 and March 15, 2021, reveals that these respondents expect to apply for Social Security benefits earlier than they had originally planned because of the COVID-19 pandemic. The subsequent survey, conducted between March 17 and March 29, showed that more than 2.7 million people planned to apply for Social Security earlier than they’d planned due to COVID.

While those early retirements will mean good news regarding job openings for younger workers, it will mean permanent cuts in monthly benefits for those who claim Social Security earlier than full retirement age (as well as their spouse or beneficiaries).

Consider this alternative to Social Security

Rather than rely on Social Security—which was conceived as a safety net, not to replace full working income—rely on your investment expertise. If you are knowledgeable about certain alternative asset classes, you can build up (and potentially speed up) your retirement savings through a self-directed IRA—or, as a business owner or solopreneur, with a self-directed SIMPLE IRA, SEP IRA or self-directed solo 401(k).

The Social Security Trust Fund’s long-term viability has long been called into question. However, one thing self-directed investors should not have to question is their confidence when it comes to making their own investment decisions, their ability to thoroughly research the non-traditional investments they wish to include in their retirement plan, and their willingness to stay abreast of the markets and assets in which they invest.

These individuals are actively working to boost their retirement savings by including a broad array of non-publicly traded, alternative assets, within their plans. That way, they not only diversify their retirement portfolios and build a hedge against stock market volatility, they can also take advantage of interesting investment opportunities that arise with such assets as real estate, precious metals, private equity, hard money loans, promissory notes, energy rights, music royalties and more. Alternative assets tend to be non-correlated with the stock market, therefore, this strategy also allows for added diversification and control over investment returns.

If claiming Social Security early is not in your plans, and you’re comfortable making your own investment decisions and conducting full due diligence on your investments, self-direction can be a great way for you to build retirement wealth. Take the first step by opening a new self-directed account at Next Generation, where you get comprehensive, superior service you can always rely on—with account administration, transaction support, and custodial services under one company umbrella.

If you need more information about how self-directed investing works, or the types of alternative assets these plans allow, you can schedule a complimentary educational session with a knowledgeable member of the Next Generation team. You may also contact us directly via phone at 888.857.8058 or email to NewAccounts@NextGenerationTrust.com.

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