Self Directed Solo 401k -How to Make the Most of Yours

When most investors hear a phrase like “ Self Directed Solo 401k ,” their eyes can sometimes glaze over.

This is particularly true if they’re new investors. It doesn’t matter if you’re old or young: sometimes, your inexperience can intimidate you, and phrases that sound complicated at first can make you feel as though you’re out of the loop. But trust us when we say that it doesn’t take very much work at all to get into the loop – particularly when we talk about a Self Directed Solo 401k.

In the case of the Self Directed Solo 401k, it’s actually a very straight-forward kind of account: and it’s an account that includes all sorts of benefits that investors like yourself should be aware of. But knowing about one type of retirement account and making the most of it are two entirely different things. So let’s “zoom in” a moment and learn how you can take advantage of the Self Directed Solo 401k right away.

Self Directed Solo 401ks: the Basics

First, a definition. In some ways, a Self Directed Solo 401k is simply a 401(k) that you direct yourself. But about that word “solo”? Well, it turns out that this retirement account is specifically geared to people who are self-employed, including sole proprietorships and incorporated and unincorporated businesses. Think of it as a way to give yourself a 401(k) plan. After all, one of the chief disadvantages to working for yourself is that you have to provide your own benefits.

The benefits that come with a Self Directed Solo 401k are very important, because they allow you a degree of freedom when it comes to building a retirement portfolio. Specifically, these 401(k) plans will have high contribution limits, which allow you to make more investments in your future with the protection of an IRA, and because they’re Self-Directed, you’ll have a tremendous amount of flexibility in terms of the investments.

Now that you know what a Self Directed Solo 401k is, it’s time to learn how to make the most of it.

Getting the Most Bang for Your Retirement Buck

Investment is, of course, by its very nature risky. But if you adopt a long-term approach to retirement, you’ll find that there are many ways you can maximize your chances at a large retirement nest egg waiting for you when you reach retirement age:

  • Take advantage of the high contribution limits. Investing through a retirement account is one of the easiest ways to invest: it comes with certain protections that general investment accounts simply don’t have. Because a Self Directed Solo 401k has higher contribution limits than many retirement accounts, you can maximize your protected retirement portfolio by putting aside a lot of money for this 401(k).
  • The best way to ensure long-term growth is to create an overall retirement portfolio that reflects your values as an investor. Many people like to include stocks and bonds as the majority of their portfolio, but there are other ways to consider as well, including adding real estate and precious metals to your overall retirement portfolio. If you have “checkbook control” in your 401(k), you can make other types of investments than simply stocks and bonds.

If you want to learn more about how to get started with a 401(k) plan that helps you build a retirement plan on your terms, you should be sure to keep reading the information you find here at Additionally, feel free to contact us at 828-257-4949 to get in touch and start the process of learning about Self-Directed IRAs in general. You’ll be amazed at what you can accomplish once you’re in control of your financial destiny.