Entrust Learning Center > 8. Newsletter Archive > The Buck Stops with You

The Buck Stops with You

By: Lisa Moren Bromma

IRA Insights

Have you ever asked yourself what could you have done differently in planning for your retirement?

Many of us have depended on others to advise them and invest their IRA or (k) plans on their behalf. There are many excellent financial advisors out there who do what is in the best interest of their clients. They listen to their needs, assess their level of risk, and invest accordingly. However, no one is ever going to care about your money as much as you do.

The majority of baby boomers will be approaching age 65 in this decade and, by 2016, outlays for Social Security will begin to exceed the income collected from payroll taxes. Because you can’t count on Social Security or other government programs to provide the income needed to secure a comfortable financial future, it’s important to take steps now to grow your IRA. It’s not too late to do some planning and to take responsibility for the growth of your retirement account. Keep in mind that your retirement plan is one of the last tax-enhanced programs available to you.

You can add value to your retirement plan by taking control and diversifying into a self-directed IRA. This type of IRA allows you to select assets and acquire them directly on behalf of your retirement plan. With a self-directed retirement fund, real estate to gold bullion to just about any other hard asset can be a part of your plan. What do you need to invest your IRA dollars directly in these assets? You need a third-party administrator or recordkeeper who follows your direction and can provide the services necessary as well as be in compliance with IRS rules and regulations.

Not all administrators or custodians are created equal. Here are three areas to watch out for when looking for an administrator or recordkeeper:

1. Make sure your administrator or custodian keeps all of your cash in FDIC-insured funds. Don’t just take their word for it—read the fine print. In one recent presentation, I heard about a custodian that mixes your cash with insured and uninsured funds. Make sure you know where your money goes.
2. Stay away from companies that sell other products and offer an IRA for free when you spend thousands of dollars for their product or services. You do not need to spend thousands to have a self-directed IRA.
3. Be careful of overpriced seminars for which you need to spend a fortune to learn investing techniques that promise to make you rich quick. As many new ones pop up as go out of business. Your education should not cost more than your home, savings, or your credit card limits!
   

It’s not always about what you invest in; it’s about how you do it. With a self-directed plan, you get to choose. Visit The Entrust Group at www.theentrustgroup.com and learn what it takes to be in control of your IRA.

What could you do differently in planning for your retirement? Having a self-directed IRA is a good start.

Lisa Moren Bromma has been a real estate investor since 1978, a note investor since 1998 and has worked with some of the top private mortgage institutional buyers. She is the author of Real Estate Investing for the Utterly Confused, and Wise Women Invest in Real Estate. Visit her web sites at www.wisewomeninvestor.com.