Sense Financial Explains Why Self Employment 401k Funds Should Not Rely on Stocks Alone

Being 100% invested in traditional assets could pose more risk rather than gains. Diversifying investment portfolio with assets that could produce income like stocks but lower risk could save an individual’s retirement and future plans.

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While stock market was performing well recently, many are concerned of its instability and are looking for alternative investments options. The solutions that we offer allow our clients to have access to virtually limitless investment opportunities.

Los Angeles, CA (PRWEB) May 22, 2014

Although the stock market has been emerging recently with investment profits making almost double, self-employment 401k owners should not be too complacent with their investments. Sense Financial strongly suggests that account holders of self employed retirement accounts must not rely only on stocks in growing their retirement savings as high risk portfolio could damage an individual’s retirement planning.

Vice President for Fidelity Investments Jeanne Thompson said, “If you are 100% invested in stocks and stock mutual funds, you are taking on too much risk.” She added, “The market is riding high now, but you don't know how long that will last. If something would happen, you could take on more losses than you want." Ms. Thompson suggests visiting a local branch of a 401(k) provider or to phone in a 401k representative to discuss an investment strategy that would work for a participant’s advantage.

Diversifying an investment portfolio is possible through the self directed Solo 401k as well as Checkbook IRA. Having a separate IRA or 401k from an employer doesn’t limit an individual to qualify for these retirement plans because employed individuals who are at the same time self employed small business owners could be allowed to set up any of these retirement plans as long as they meet the requirements for a self employment 401k.

According to Sense Financial President and Founder Dmitriy Fomichenko, "While stock market was performing well recently, many are concerned of its instability and are looking for alternative investments options. The solutions that we offer allow our clients to have access to virtually limitless investment opportunities." In a self directed retirement plan, a participant can direct his funds to non-traditional investment options like real estate, notes, and tangible assets that can also yield high income yet more stable and secure than stocks and mutual funds.

Furthermore, aside from the diversified investments, the self employment 401k like the Solo 401k can also be tax diversified because of its self employed roth 401k built in account where an individual can assign part of his contributions on a post-tax basis which allows his investment earnings free from tax when he make qualified withdrawals and distributions in the future.

Sense Financial is California's leading provider of retirement accounts with "Checkbook Control": the Solo 401k and the Checkbook IRA. Over the years, they have assisted hundreds of clients obtain checkbook control over their retirement accounts while providing them with the ability to invest in virtually any investment class, including real estate, private lending, mortgage notes and much more without the need for custodian approval.

To learn more about the solutions they provide, please contact: (949) 228-9393.