Not Quite Ready for Self-Directed IRAs-Start with These Baby Steps
“Sure, I’ll look into that…one day.”
When’s the last time you thought that phrase, or said it phrase out loud? If you’re like most people, you make a habit of procrastination. And why not? When faced with big, life-changing ideas, it can be challenging to wrap your mind around learning an entirely new perspective or investment option. We all do it. But that’s no excuse for continuing to put off major decisions.
The solution: baby steps. Breaking one big decision down into smaller, achievable steps doesn’t only help us take our time through a new journey, but it ensures we take that journey in the first place. The same way small children first learn to crawl before they can walk is the same way we should all learn: one small baby step at a time, progressing a little further each time until we arrive at our goals.
There’s just one problem. When it comes to Self-Directed IRAs, you’ve read so much that you’re not even sure what the first baby step would be.
Let’s fix that.
Baby Step #1: Read!
Reading is a great first step because it bypasses our usual procrastination pathways. Reading up on a topic, after all, is not the same as committing to it. Before you take on a new hobby like fishing, for example, you could try getting a book from the library and seeing if the hobby actually interests enough for you to take the next baby steps along the way: actually making purchases.
It’s the same way with investments. All you should do at first is read. If the old adage that “knowledge is power,” this won’t be a meaningless first step: it will represent a major introduction into an entirely different way of thinking about your retirement finances.
Best of all: reading is risk and cost-free. If you’re not the kind of person who enters a swimming pool first by yelling “cannonball!” then you understand the appeal of a risk-free way to begin a new way of looking at things. And if you are the cannonball type, you can read to your heart’s content. Check out our own eBook on the subject of Self-Directed IRAs to begin this baby step.
Baby Step #2: Review Your Assets
Now that you know a little more about Self-Directed IRAs, it’s time to turn the magnifying glass on your own financial situation: reviewing your own assets. Self-evaluations aren’t always easy, but they’re essential if you’re going to effectively plan for your future.
When you review your own assets, do it with a goal in mind. Ask yourself a few pointed questions, like:
- Are there options in Self-Directed IRAs where this money would be better spent, such as real estate or private investments?
- Is my rate of return on my usual IRA really earning me enough to feel comfortable about retirement?
- How much money am I paying out to money and wealth managers…and how much of that can be saved through a Self-Directed IRA?
You might be surprised by the answers.
Baby Step #3: Follow Up with Sources for Self-Directed IRAs
If you’ve emerged from these baby steps with a new goal in mind, it’s time to take your first real action into the world of Self-Directed IRAs. Follow up with a company like American IRA! You don’t even have to make a commitment yet. Simply call us at 866-7500-IRA to find out how Self-Directed IRAs might be a better option for building a diverse, substantial retirement account. And that’s no excuse to stop reading, either—you can continue to read all sorts of information on Self-Directed IRAs right here.