Self Directed Retirement Plans: Retirement Solutions for Millennials

According to the Bureau of Labor of Statistics, the average annual expenditures for retirees age 65 to 74 is more than $46,000. Millennials, however, think that they can get by with much less. According to a survey by the Insured Retirement Institute and the Center for Generational Kinetics, 70% of millennials expect to need less than $36,000 a year during retirement.

Underestimating their living expense during retirement may be one of the reasons why millennials are ill-prepared for their future. Another reason is their wariness of the stock market. Surveys show that 74% of millennials do not invest in stocks. Having witnessed the market turmoil during the recession, young workers shy away from investments that can risk their life savings.

However, saving for retirement should still be a priority for workers, young and old. Sense Financial recommends that millennials start saving for their future as soon as possible. Thanks to the compounding effect, a small sum now can grow into a much bigger fund over the years.

The key to successful retirement planning, aside from saving early, is choosing the right investments. In traditional retirement plans, such as employer-sponsored 401k, often, plan participants are restricted to a handful of options. This is why many young workers are now exploring the options of self-directed retirement plans.

With self directed plans such as the Solo 401k or Checkbook IRA, there is virtually no limit when it comes to investment choices. Plan holders are free to invest in any stocks, funds, precious metals, real estate, and more. As the name suggests, plan owners take control and can direct their investments as they see fit.

Many investors take this opportunity to invest in real estate assets, such as rental properties, mortgage notes, or trust deeds. With the ability to fund transactions as simply as writing a check, investors now can take charge without going through a custodian.

Self directed retirement plans such as the Solo 401k and Checkbook IRA is a great way for millennials to jump-start their retirement savings if they have not done so. For those who already max out their 401k limit, having an IRA can allow them to contribute more during the year. For self-employed young workers, including young entrepreneurs and freelancers, a self directed Solo 401k is a great solution. The plan is designed for self-employed individuals who would otherwise be without access to a traditional 401k.

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