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It is now a well known fact that many, if not most, retirees--or about-to-be retirees--are having to rethink and/or augment their retirement plans and accounts because those plans and accounts are being hijacked by inflation these days--by things like the rising cost of energy, gasoline, food and many other things.
Indeed, the fact is that most retirees--or about-to-be retirees--are currently making less than 6% annually on their retirement accounts--and many are making far less than 6%. And yet, inflation is currently clipping along at anywhere between 12% and 15% annually--depending on who one listens to, or believes.
Hence, many people's retirement plans and accounts are being eaten alive and they are having to either:
- delay their retirement
- work at least part-time even after retiring
- live a spartan life they never imagined they would have to live in retirement or
- find some other way to augment their retirement accounts and plans.
There is hope for this increasingly disenfranchised segment of our population, however--and that hope comes in the form of "self-directed retirement accounts"--or SDRA's.
The law and the various regulatory agencies and regulations that govern such things allow--and have allowed for years--people to "self-direct" their own retirement accounts, or monies, in search of a better return on that money than they may currently be getting.
And virtually every institution that manages or administers such retirement accounts is required to allow retirees or about-to-be retirees, to become so involved in, or with, the management and administration of their own retirement accounts--and that even includes things like the trust departments of banks and so on.
Unfortunately, most institutions and organizations don't like to handle such retirement accounts because they do not, or can not, make as much money off of you if they do that. So, most resist attempts by their retirement account based customers to do such things.
Hence, there are now companies that specialize in handling such self-directed retirement accounts and customers. And this writer recommends those companies to you for your consideration. Among such companies are the following:
- the Entrust Group
- Penco Trust
- Trustlynk
- Millenium Trust
- and others.
You can find out much more about any of these companies and about self-directed retirement accounts, in general, on the Internet through a google search.
Two words of caution are in order here, however:
- any promised return on investments above 15% per year is highly suspect--especially in today's market and
- if something sounds too good to be true--it probably is too good to be true.
Also, you should be aware that such companies (like the Entrust Group, for example) are not allowed to give legal, tax or investment advice and that there are some kinds of investment instruments or investments, that retirement accounts or monies can not, by law, be invested it.
Later installments in this self-directed retirement accounts based column will address some of these more technical questions about such things.
In the meantime, however, please be assured that you do not have to take what is happening to you and your retirement accounts and plans laying down. You do have recourse in the form of self-directed retirement accounts. You can fight back--and very successfully so if you know what you are doing--through the wise and judicious use of SDRA's.
We will talk again about this in the next Senior Sampler. If you have questions, please send or email them to the addresses shown below.
Dr. Benson (PhD) is a semi-retired university business professor (i.e. Indiana University, University of Wisconsin, ITESM, UNISA etc) who writes this column free of charge--and he is also a part-time, adjunct faculty member at Stevens Henager College in Utah Valley. He can be reached either at 1476 S. Sandhill Rd., Orem, Utah 84057 or
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Money may be the husk of many things but not the kernel. It brings you food, but not appetite; medicine, but not health; acquaintance, but not friends; servants, but not loyalty; days of joy, but not peace or happiness.
-- Henrik Ibsen
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As soon as man does not take his existence for granted, but beholds it as something unfathomably mysterious, thought begins.
-- Albert Schweitzer |
