Is Your Retirement Tied to the European Union’s Future?

The European Union, presidential policies, and high-frequency traders all have a significant influence on the stock market, even though they are beyond your direct control. This unpredictability can be a problem, especially when it comes to your retirement savings.

Most Americans have their retirement funds tied up in a traditional IRA or 401(k) managed by reputable companies like Vanguard or Fidelity. While these companies have a good reputation, their retirement plans, which depend heavily on the stock market, have their downsides. The constant ups and downs caused by political decisions and modern trading methods can make managing your investments stressful. It’s tough to watch your retirement savings decrease, even if your plan is with a well-regarded provider.

So, what can you do? One option is to move your retirement funds from Wall Street investments to assets you know well. Maybe you’re familiar with local real estate, have special insights into a certain industry, or see precious metals as a reliable hedge against economic woes. In such cases, a Self Directed IRA can give you control over your investments.

With a Self Directed IRA, you can choose the assets you invest in. There are two main types: Custodian and Checkbook Control. With the Custodian model, the custodian manages your funds and handles transactions, which often leads to higher fees and more bureaucracy. The Checkbook Control model, however, puts you in charge of your funds through a personal checking account. This approach eliminates middlemen, paperwork, and extra costs, making it the popular choice among self-directed investors.

For those who are self-employed, there is a similar option called the Solo 401(k). This account works like the IRA, offering Checkbook Control and diverse investment choices. It also allows for personal loans up to $50,000 and higher annual contributions. You don’t need to be fully self-employed to qualify; even a small amount of self-employment income can make you eligible.

No matter which option you choose, actively managing your self-directed IRA is key. It’s not just about picking stocks and leaving them be. You need to take an active role in growing your funds and securing your financial future by investing in areas you know well. In essence, you’re taking charge of your prosperity.