Financial New Years Resolutions for Self-Directed IRA Owners
Yes, ‘spend less’ and ‘save more’ are both good things. But as New Years’ resolutions go, they are recipes for failure and frustration. Why? They are simply not specific enough. To maximize your chances of success, New Years’ resolutions should be ambitious yet realistic, specific enough to define success or failure (so you and your loved ones can hold you accountable), and come with some milestones along the way to help you gauge and measure your progress toward your personal and Self-Directed IRA goals.
Here are some of the top financial New Year’s resolutions we have heard over the years from clients, colleagues, and successful people we’ve met around the country speaking about a Self-Directed IRA.
- I will maximize my annual contribution to my Self-Directed IRA or Roth IRA. In our view, there are two optimal ways to do so: Make your whole contribution at the very beginning of the year, and then forget about it, or automate monthly contributions equivalent to your annual maximum contribution. But if you believe in the power of tax-advantaged retirement saving so much that you are willing to sacrifice up to $5,500 in consumption per year, and twice that for married couples (plus another $1,000 if you are over age 50), then why stop there? If you’re able to accomplish this goal, you may be ready to supercharge your savings by taking it to the next level:
- I will establish and fund a small-business or self-employed retirement plan. A solo 401(k) or SEP can work very well for small business owners, sole practitioners and self-employed individuals who are able to set money aside for the future. Both account types support self-directed retirement investing strategies. And there are even tax credits available to help you manage your set-up costs, under the right circumstances. Call us at American IRA, LLC today for more information about how to set up and fund a small business retirement plan.
- I will find my first-self-directed retirement investment this year. For those of you who have not yet taken the plunge and actually directed retirement assets into self-directed strategies yet, now is a great time to get started. Traditional financial assets are at all time highs as of this writing, which is historically a good time to start diversifying into non-traditional asset classes, including real estate, tax liens and certificates, private equity, private lending, gold and precious metals, and the like.
- I will use a budget or spending planning system this year to help maximize the amount I have available to invest in self-directed retirement accounts. The important thing isn’t to find the perfect system. The important thing is to find a system that works adequately for your situation and stick with it. Some people love tracking every dollar on their mobile devices. Some people swear by grandma’s envelope system. Some people need something in between. The most important thing is that you and your spouse should be in agreement about the system that you use and that you stick with it.
Whatever stage you’re at in your financial journey, we want to be a part of it. American IRA, LLC specializes in helping owners of Self-Directed IRAs and other retirement accounts through cost-effective transaction execution, reporting and administration services. Whether you’re a seasoned self-directed retirement veteran or a novice about to buy your first rental property for a Self-Directed IRA, we want to hear from you!
Call us today at 866-7500-IRA(472). Or visit us on the Web at www.americanira.com