Spring Into Retirement Savings with a Self-Directed IRA

Published on March 30, 2023

The trees are budding, flowers are blooming, and breezes are warming throughout most of the United States. And in self-directed IRAs across the land, alternative assets are offering more creative ways to save for retirement, while providing a hedge against growing concerns around the volatility of the stock market.

There’s still time to maximize your savings by contributing to a new account for both 2022 and 2023—for Traditional and Roth IRAs, that is up to $6,000 for 2022 ($7,000 if you are age 50+) and $6,500 for 2023 ($7,500 if you are age 50+). You have until the tax day deadline, which is Tuesday, April 18th, to take advantage.

So, what’s an account owner to do with those funds?

Grow your retirement savings through self-direction

By opening a self-directed IRA this spring, you open the door to a wide array of investment options that can be included in these types of accounts.

A self-directed IRA enables you, the investor, to build a more diverse retirement portfolio by investing in assets you already know and understand—and might already be investing in outside of your existing IRA.

The idea behind self-direction is that the account owner is truly self-directed—comfortable making all investment decisions, doing all the research and due diligence on the investment, and directing one’s retirement portfolio quite actively (but there are plenty of more passive opportunities out there as well!). The plan administrator executes the transactions upon the account owner’s instructions and the custodian holds the assets on behalf of the IRA.

Why a self-directed IRA?

Unlike typical brokerage accounts that limit your IRA to stocks, bonds, and mutual funds, self-directed IRAs can include a broad array of nontraditional investments. These include real estate, precious metals, royalties, private equity, secured and unsecured loans, and many more. You can read up on this on our FAQ page.

In short, if a certain investing opportunity arises that makes sense for your retirement saving goals, you can go for it within your self-directed IRA. You can include assets that align with your values, such as certain ESG investments and social causes. These alternative assets tend to not correlate with the stock and bond markets, so typically, they deliver returns over the long term without the volatility many other investors experience. And you’ll get the same tax advantages as a regular IRA, whether those retirement savings grow tax-deferred or tax-free.

Take a fresh look at your retirement savings this spring

When spring is in the air, it brings a feeling of renewal to many people. It’s a great time to renew your commitment to saving for retirement—perhaps in a new way with a self-directed IRA. If you have questions about this retirement strategy, you can schedule a complimentary educational session with a Next Generation representative who will explain how self-directed IRAs work and the many options available through these plans. We invite you to watch our on-demand webinars as well, which focus on various alternative asset classes. You can always call us at 888.857.8058 or email NewAccounts@NextGenerationTrust.com. At Next Generation, we love to talk about self-directed retirement plans at any time of the year!