Build your financial future by maximizing your retirement assets.
Are you one of the many investors who recently suffered significant losses in your retirement account as a result of the stock market downturn?
In 2008 Americans were faced with the unthinkable collapse of large banks and investment firms, combined with sinister scandals targeting investors. The climate of fear created by scandals such as the recent global Ponzi scheme orchestrated by the rogue Bernie Madoff, has some investors running for proverbial hills with their nest eggs.
Recovery Plan
Investors fed up with their shrinking retirement accounts and the shortage of financial entities entrusted with their livelihoods, may want to consider taking control of their financial fortunes and starting to build wealth with a standalone IRA. The main advantage of a completely independent IRA is that the account holder is directly involved in the selection of the IRA’s assets. Standalone IRAs allow asset classes in “traditional” investments such as stocks, bonds and mutual funds and “non-traditional” investments such as real estate (foreign and domestic), mortgages, notes, tax liens, LLC’s, personal placements and more.
More and more individuals are discovering a standalone IRA, an investment vehicle that features the freedom to choose from these various investment alternatives without being “locked up” with the limitations of traditional stock market investing that brokers and bankers offer to your IRA.
Wall Street’s motive for monopolizing your retirement portfolio is based on the steep “commissions” they make for selling you their limited menu of financial products. In contrast, the custodians and administrators in charge of independent IRA accounts will not (or cannot legally) sell you investment advice, financial products, or charge commissions – they only charge an annual fee ranging from $100 to $2000 dollars depending on the investment portfolio.
Power of Diversification
Consider this. Most of us are familiar with the term “diversification” in investing, right? Diversification is a concept often explained by the old adage – “don’t put all your eggs in one basket.” Harry Markowitz, thought leader and developer of Modern Portfolio Theory states that diversification is a “free financial lunch.”
Yes, it is considered mission important to maintain a diversified “mix” of investments in the investment portfolio. And a rather surprising fact is – the retirement portfolios of 96% of American investors currently held in inflexible traditional IRA accounts at banks and brokerage firms simply do not adhere to this traditional wisdom. (Buyer beware: the “stand-alone IRAs” offered by many banking institutions and brokers are “false” – this is a term that implies that account holders can only “pick” from a “menu” of stocks, bonds, and mutual funds. offered by the company or institution.)
So why be limited to stocks, bonds and mutual funds as an investment strategy to grow your assets? Should you accept a 2 or 3% rate of return when you can hit 20 or 30%, depending on your risk tolerance? Standalone IRAs allow for an endless variety of asset classes, with the IRS prohibiting only 3 types of investments: Life, Collection, and S Corporations Insurance. (reference: IRS Publication 590)
With optimal diversification and reallocation of assets in a standalone IRA, meeting your retirement goals can actually become a reality.
Get Suggestions
“Those who don’t want to be counseled cannot be helped.” – Benjamin Franklin. It is imperative that after opening a standalone IRA account, you consult with experts to avoid breaking the law or illicit transactions related to the use of IRA funds. You don’t want to be subject to rigid IRS penalties and damages for lack of education and expert advice.
In any investment portfolio, there needs to be a good mix of opportunity and risk. If you want to make money, you cannot eliminate all risk, but the goal is to find the right balance and each investor must decide what his risk tolerance is with the help of a trusted financial professional.
Real estate investing, for example, historically safe and tangible investments, has created significant wealth for investors who understand the risk-return trade-off of this asset class. With real estate, independent IRA investors have the security of tangible assets, whereas investing in mutual funds you may not know “where” your money is actually invested. With your standalone IRA, you can take control, choosing from a myriad of investments to complement and enhance your retirement portfolio.
Approach
Six Steps to building your financial future:
1) Choose a top tier custodian and open a standalone IRA account 2) Do your homework – continue to educate yourself about independent IRA investing 3) Get advice on potential investments from your information (specifically about independent IRA and investment guidelines) and trusted professionals (CPAs) , lawyers, advisors) 4) Seize higher yielding investment opportunities using investment growth strategies 5) Take advantage of the tremendous tax advantages – one of the main goals of independent IRAs is to provide a vehicle for taxpayers to grow their wealth without being subject to income tax on profits 6 ) Be responsible, take a proactive approach to improve investment returns, take advantage of a wider range of investment options
Take Responsibility for Your Financial Future
Up to you.
Less than 4% of investors direct their investments, are you ready to play an active role?
Taking personal responsibility for planning your financial future is more important than ever. Think about it. The amount of retirement savings you accumulate will have a direct and dramatic impact on whether you will be able to maintain your standard of living in retirement.
To maintain their standard of living, most people will need more than just their social security and corporate retirement plans. With a standalone IRA, you have the privilege and responsibility to make sound financial decisions about your IRA money. However, you should be prepared to educate yourself, enlist the help of qualified, knowledgeable professionals to achieve greater diversification and investment potential.
A standalone IRA is an invaluable tool for creating wealth when guidelines are followed and used efficiently with proper asset allocation. If we remain proactive in educating ourselves about the various options and flexibility we have for growing our retirement dollars, we will indeed reap the benefits and prosperity.
Why not take control of your financial destiny? Invest in a brighter tomorrow with a standalone IRA.