Saving for retirement
Recent data suggests that nearly half of working Americans don’t have access to matching contributions in a retirement plan from an employer.
One way for Americans to help capitalize on rising asset prices without relying entirely on contributions to a savings account is to turn to a tax-advantaged individual retirement account (IRA) with allowable investments outside the stock market.
However, even assuming you achieve the average inflation-adjusted return of 6% in the stock market, you would need to contribute $3,813 every month over 25 years to build a nest egg of $1.692 million by age 65 to retire comfortably. (Source)
Suppose you are starting later in life or are a contractor without access to a 401(k). In that case, you will either need to turn to a retirement plan with a higher contribution limit or look for alternative ways to build wealth for retirement.
While higher contribution plans, such as SEP IRAs, are available, they are typically restricted to self-employed individuals or business owners.
Often, a more straightforward option is self-directing your IRA to invest in higher-growth assets that can help you keep pace with inflation.
Self-directing is easier than you think and you can even invest in assets, such as real estate, private equity, Bitcoin, and precious metals, without paying a dime in capital gains.
In fact, self-directing is how Peter Thiel was able to turn a low-contribution IRA into a multi-billion-dollar portfolio.
If you’d like to find out more, let us know, happy to educate you with no obligation
