As we enter into the first few days of the new year, people young and old are eagerly setting their goals for 2022. Common activities like going to the gym and saving money are resolutions on most peoples’ minds… but what about investing more in a retirement account?
Setting yourself up for the future is one of the best practices you can take, and as we say hello to 2022, there’s no better time to start saving for retirement with a Self-Directed IRA. Adding Self-Directed IRA investments to your retirement savings portfolio can help you build wealth so you can retire comfortably! Here are some of the top reasons Americans should add building a retirement savings plan to their 2022 goals:
1. Retire on Your Own Terms
When you invest with a Self-Directed IRA, you are taking back the control over your retirement account. With the ability to invest beyond publicly traded investments into non-traditional assets like real estate, notes, private companies, oil and gas, multifamily property and much more, you can easily grow your retirement account by directing it into investments you know and understand. You can decide the terms of your investments and can make all the decisions about where your money goes. Being able to distribute funds into almost any alternative investments that you’re familiar with will give you more flexibility and peace of mind.
2. Save in a Tax-Deferred Retirement Account
It’s no secret that there are multiple different saving and investing vehicles out there to choose from, but you should really focus on savings accounts that were created with retirement in mind. Although saving in any account is good practice, investing in a tax-deferred or tax-free account can provide added benefits that other savings accounts cannot. Saving in a tax-deferred account reduces the amount of taxes you owe on the income for each year you invest in it, allows you to defer (and sometimes even avoid) the taxes you owe on the earnings that build on your investments, and it creates additional earnings on top of earnings. This produces a compounding effect – something unavailable in a regular savings account. Learn more about the power of compounding interest from Quest Founder, Quincy Long.
3. Don’t rely on social security
Social Security can be a great source of money for when you retire, but it shouldn’t be the only bucket of money you are relying on. Financial advisors and Investopedia say that those looking to retire will need about “70% of their work income” in order to be comfortable in retirement. With Social Security only making up about 40% of the income needed, you will want to have other buckets of money. Investing with a Self-Directed IRA could be the answer! Utilizing another retirement vehicle can exponentially increase your retirement funds.
By spending a little bit of time at the beginning of this year, you could be setting yourself up for major success down the road. All it takes is a little bit of planning! Starting a self-directed IRA in 2022 and using it to invest could be the answer you’ve been looking for. If you’d like to learn more about why the time to start saving for the future is now, we would love to share how to invest for retirement. For further information and the benefits of Self-Directed IRA investing, schedule a free call today!