Fiscal Cliff deal makes it easier than ever to rollover IRA and 401(k) monies.
Seattle, WA (PRWEB) February 05, 2013
Silverstone, a provider of self-directed IRA set-ups has noticed a significant increase in demand for its services in recent months among the newly retired. Surveys of recently acquired and retired clients indicate several reasons for moving retirement funds after leaving gainful employment. First, retirees can no longer receive the added benefit of matching within employee 401(k) accounts. Secondly, retirees often find huge market swings deter them from diving headlong into mutual funds in the current volatile market. Finally, with more time on their hands, clients see the flexibility of having checkbook control of their retirement funds without tax or early withdrawal penalties a must-have feature once they transition out of the workforce.
Statistics indicate that approximately 10,000 baby boomers are exiting the workforce on a daily basis for the next nineteen years. This boom in retirees is creating growth among self-directed account set-ups for the recently retired. “Think of it for a moment. You’ve a spry, recently retired 60 or 65 year old who’s likely amassed a great deal in his or her retirement account. Sitting on the funds in a mutual fund in retirement is much less interesting than tapping the money for real estate, precious metal and small business investing,” says Troy Jenkins, Marketing Manager for Silverstone. “It’s a way to gain control over personal investments without breaking the bank.”
Self-directed retirement accounts provide an excellent way for alternative investing strategies to become an integral part of any personal wealth portfolio. For instance, IRAs and 401(k)s can be easily used to invest in assets outside the realm of traditional thinking for IRAs and 401(k)s. Many recent retirees are even taking advantage of new rules included in the fiscal cliff deal that help individual investors in rolling over their retirement accounts.
Checkbook control over IRA funds provides a number of key benefits to the recently retired. First, checkbook control allows investors to act quickly on distressed and/or undervalued investments, flipping them for a quick profit. This could include real estate and even small franchise businesses where an owner is just looking to get away quickly. When timing and speed are issues, checkbook access to IRA funds can provide meaningful access to capital and create investment opportunities in a tax-sheltered way.
Secondly, having checkbook access to funds provides the freedom of investing in real estate and even small business private placement deals. Such control gives access to money within the account without being restricted to mutual funds and other market investment vehicles.
There are some downsides to investing a self-directed IRA with checkbook control, however. “The biggest risk associated with checkbook control is the issue of fraud,” says Jenkins. “It can be easy to get swept into bad investments or get duped by bad people. When investing IRA funds it is important to keep in mind that there is no regulatory oversight or control in individual real estate and local private equity deals.” With judicious foresight and the help of certified investment professionals, the newly retired can actually see their investment returns significantly increase after they declare retirement.
Formerly retirementaccount.net, Silverstone is a self-directed IRA and small business 401(k) provider. The company is based in Seattle, WA and assists investors young and old in unlocking the full potential housed in tax-sheltered accounts. By providing expert services and timely consulting for current and future retirees, Silverstone is able to fully maximize the returns of retirement investors without incurring penalties or tax fees. For more information, please visit the company website.