Individual Retirement Accounts, also known as IRAs, are an investment vehicle that helps you prepare for your retirement. There are many types of IRAs available to investors, and the plan that you choose will be unique to your personal financial situation. All 401ks are government regulated retirement accounts that are offered through your employer. A new form of the 401k is called the Solo 401k plan and was uniquely designed for the small business owner. Self-directed IRA plans put you in control of your finances and your retirement planning instead of a custodian. If you have a 401k plan from your previous employer, you can start a 401k transfer to IRA. Once you have established a self-directed IRA, you have unlimited control.
Again, Solo 401K plans are offered to small business owners, consultants, even independent contractors but with one advantage over a traditional 401K plan, you do not have to spend additional resources to hire a custodian because the plan only covers one person: you. Here are a few of the solo 401K rules: you can make investments in almost any investment vehicle, including real estate; there is a built in tax shelter; and the federal taxes that are paid are tax deferred. As a participant in a Solo 401K plan, you can make a contribution up to 54,500. Additionally, if you are facing a hardship or your business needs to take a loan against the plan you can borrow up to $50,000.
Many employees who have lost their jobs or have started their own businesses may want to begin the process of a 401k transfer to IRA. Self-directed IRA is a great way to take control of your financial future. Investors have checkbook control over their investments. Which means he or she can decide how they want their funds invested. The benefit to that is you do not have to get a custodian’s approval, wasting valuable opportunities to seize on a great investment. We all know that investing can be a time-sensitive venture and the quicker you can get in the better for your portfolio. Additionally, mutual funds, money market accounts, or even stocks do not bind you; you can also invest in real estate, the Forex market, precious metals, or commodities. Wherever you feel your money will work best for you is where you can invest. Your only limit is your imagination.
If you want complete control of your assets and finances then consider self directed IRAs or if you are sole proprietor, Solo 401k plans can really maximize your dollars.