Recent surveys and studies show that Americans are not confident about their retirement future. Many don’t save enough, others start saving too late, and some don’t even have a retirement plan. A recent survey from Gallup confirmed the result of the lack of saving: More Americans now are expecting to work beyond the median age of 65.
The survey showed that only 32% of Americans are now expecting to retire before the age of 65. This leaves 68% of Americans plan to continue working until the age of 65 or beyond this age.
This trend is a result of a longer life
Sense Financial, a provider of self-directed retirement plans such as the Solo 401k and self-directed IRA, recommends workers to start looking for a good retirement solution before it is too late. The earlier they save, the earlier they can expect to retire.
Aside from saving early, investors can also rely on a smart investing plan to boost their funds. Instead of relying on the secure but low return target date funds, many investors are now utilizing self-directed options to invest in other classes of assets.
The Solo 401k, or often known as the self-directed 401k for self-employed, is one of those self-directed options. The plan allows its participant to invest in almost any assets they wish, including real estate, trust deeds, private lending, private businesses, and more.
With the flexible option, the owner of a self-directed 401k for self-employed can invest in a rental property and collect rental income from it. Because the investment is secure with the property, often, plan owners face less risk comparing to a stock investment with a similar return.
The flexible plan also comes with one of the most generous contribution limits of up to $53,000 a year in 2015. Plan participants who are over 50 years of age are allowed an additional catch-up contribution of $6,000. The generous contribution limit offer older workers a chance to catch up with their savings and make up for the time lost.
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 to 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 Solo 401k, please visit sensefinancial.com.
