With the recent downgrade of the United States credit rating by S&P and the downward moving stock market, more Americans than ever before are concerned about the prospect of investing all their retirement assets in the U.S. financial markets. The 2008 financial crisis created over 1 trillion of losses for retirement asset holders and showed us the danger of trusting Wall Street with all our retirement investments. Now the recent meltdown in the financial markets and the downgrade of the U.S. credit rating by S&P offer another reminder that retirement asset diversification is crucial to maintaining a strong and growing retirement portfolio.
With a large number of financial experts recently announcing their views that America will experience higher interest rates and lower stock market returns over the next several years, no longer should allocating all ones retirement assets to Wall Street investments be considered a sound retirement planning solution.
While the immediate impact of S&P’s decision to strip the U.S. of its sterling AAA credit rating for the first time and lower it one notch to AA+ is not clear, what is clear is that the downgrade will put mounting pressure on the United States financial markets as well as the U.S. dollar.
The Solo 401K Plan offers a self-employed individual or small business owner a easy and safe way to grow and diversify their retirement portfolio tax-free and protect their funds form a falling U.S. dollar and U.S. credit rating downgrade.
With a Solo 401K Plan, also known as an Individual 401K or Self Directed 401K Plan, self-employed business owner the ability to make high annual contributions (up to $54,500) while using his or her retirement funds to make almost any type of investment, including real estate, tax liens, private businesses, precious metals, and foreign currency on their own tax-free! In addition, an individual 401(k) plan will allow you to borrow up to $50,000 for any purpose, make Roth contributions, while requiring minimal administrative attention. With a solo 401(k) plan, the account can be opened at any local bank and you serve as trustee.
Using a Solo 401K Plan, the self-employed individual or small business owner with no employees would be able to re-allocate his or her retirement portfolio into different asset classes, such as real estate or foreign currency, which may prove more resistant against a United States financial or debt crisis. In addition, the purchase of foreign assets and/or precious metals would likely help protect ones retirement assets against a falling U.S. dollar. In a time where the financial and economic stability of the United States is in doubt (the S&P acknowledged this in downgrading the U.S. credit rating), the Solo 401K Plan offers retirement investors with an easy and quick opportunity to increase their retirement funds while diversifying and protecting their retirement assets by making investments in foreign real estate, currency, precious metals and other types of investments.