A recent government report said there are at least 9,000 taxpayers with so-called super-sized IRAs: IRAs with at least $5 million. While many Americans think that $5 million is a number they’ll never achieve in their IRA, a recent article in Private Wealth magazine
outlines what it calls a road map to accumulating a retirement account of that size.
One of the strategies for amassing millions for retirement involves creative steps that can pay off, including placing a low value on your initial investments, in anticipation of growth later.
Work for yourself.
Another way to potentially grow your IRA quicker is to be self-employed. You can then qualify for a small-business IRA, which allows you to contribute as much as $52,000 per year instead of the $5,000 per year that non-self-employed wage earners are limited to.
Advisors in the article also mention using a self-directed IRA to invest heavily in a closely-held company. If the company succeeds, it offers tremendous growth potential for the IRA, according to the advisor quoted. Self-directed IRAs offer a flexibility that a conventional IRA does not: with a self-directed IRA, you can invest beyond the stock market, allowing you to invest in private companies and a wide range of other investments, including real estate, tax liens, promissory notes, and oil and gas ventures.
A self-directed IRA can only be obtained through custodians (such as Equity Trust) qualified to administer them. If you’d like to explore the possibility of growing your retirement savings with a self-directed IRA, schedule a free one-on-one IRA checkup
with one of our Senior Account Executives and find out which strategies might help you reach your retirement goals.