The official letter came today. The company announced it was switching its current 401K plan carrier for another. This decision was being made in the best interests of its employees.
One can only speculate why the company didn’t invest in the new plan initially rather than the old plan. The company gave me ten days to accept the change or to request an alternative exchange. This would not happen with self managed IRAs.
Having ten days to thoroughly research a new investment option seemed an arduous challenge. Understanding the new company’s portfolio and investment diversification strategy can be a complicated task for those who are not investment savvy.
Too little time to make such an important decision, isn't it? After all, we are just talking about your retirement fund.
An alternative to someone else making investment decisions for you is self-managed IRAs. With this package, you are in charge and direct how your money is invested.
Yes, this will place additional demands on your time and energy. Planning, research, and analysis will be required.
You may have to solicit services from an accountant, financial advisor, real estate agent, attorney, and perhaps others.
The significant point to remember is that you are completely and ultimately responsible for how much you will have available at retirement.
The effort and energy that you expend today will influence to what extent you will enjoy your tomorrows.
Would you rather act in your own best interests or trust your investment plans to a faceless entity? Will they always act ‘in your best interest’?
The combination of self-directed IRA investments strategically placed into the real estate market has created wealth for those who are willing to pay their dues. The internet and periodicals are increasingly loaded with success stories.
All teach the same lesson. Command and control are the keys. Your initiative and mastery of investment matters will generally produce higher positive outcomes.
After all, it is your retirement we are talking about, isn’t it? The self managed IRA might be just what the financial doctor ordered.
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