Recently, Bank of America published its latest Merrill Lynch Affluent Insights Quarterly, a survey looking at the financial concerns and priorities of affluent Americans. What does this have to do with you and your self-directed IRA? Keep reading.

Even if you don’t consider yourself affluent, the information makes a good case for the wisdom of having a self-directed IRA. Here are some of the items brought up in the survey and why a self-directed IRA could help:

• 48% of affluent retirees found that having a clear vision for how they want to live during retirement, as well as knowing how to manage retirement income to ensure it lasts throughout their lifetime (52%), was more important than originally expected.
  • As you already know, a self-directed IRA gives you a greater sense of control over retirement savings, helping you to establish expertise in a particular alternative investment area like real estate or promissory notes. You can continue to use and hone that expertise during your retirement years as you manage your retirement income to last a lifetime.

• 78% of affluent retirees recommend that individuals should begin to plan financially for the life they want to live in retirement no later than in their 30s; 57% recommend that individuals start planning in their 20s.
  • Many Equity Trust clients are already taking charge of and building their retirement savings by working their plan. Check out our success stories page.

• What gives affluent non-retirees confidence in their ability to meet long-term goals? 79% cited being heavily involved in their financial decisions; 76% said setting realistic retirement goals; 69% noted having a diversified portfolio.
  • A self-directed IRA certainly provides the opportunity for more active involvement in financial decisions affecting retirement and it positions you to be more in touch with what’s realistic for your future retirement lifestyle. Plus, since you can invest in both traditional and alternative investments, you have more ways to create a diversified portfolio.

• 64% of the affluent (both retirees and non-retirees) view the rising cost of health care as a top financial concern.
  • Coupled with a High Deductible Health Plan (HDHP), a self-directed Health Savings Account (HSA) can significantly reduce health insurance premiums while you set aside funds to pay for current and future medical expenses. Plus, a self-directed HSA provides a triple tax advantage: 1) Funds contributed to an HSA are pre-tax or tax-deductible 2) Any earnings on the money in your HSA are tax-free 3) Withdrawals for covered qualified medical expenses are tax-free.

Want to discover even more about self-directed IRAs and HSAs? Contact an Equity Trust account executive today at 1-888-382-4727.

Filed under: Uncategorized on February 14th, 2011