When an employee leaves their job, they have to make a decision about what to do with their employer-sponsored 401(k). One of their options is to roll it over into a self-directed IRA with Mountain West IRA.
Like the 401(k), a self-directed IRA is a tax-deferred account, but it has some additional benefits not available in the traditional 401(k) plan. With their employer-sponsored plan, employees can only invest in a limited variety of options such as stock funds, bond funds, and money market accounts. With a self-directed IRA from Mountain West IRA, investors have a much broader range of investment options.
Multiple retirement plans from former employers can be rolled into a single self-directed IRA account. This can make it easier for investors to keep track of their retirement funds. There are no additional tax ramifications when rolling a 401 (k) into a self-directed IRA.
Rolling a 401(k) into a self-directed IRA with Mountain West IRA can be a good choice for those who:
- Are looking for a larger choice of investment options for their retirement funds
- Are no longer utilizing their (previous) employers 401(k)
- Considering making an Traditional IRA Contribution to potentially lower their current tax bill
When considering rolling the plan over, the employee first needs to contact their former employer’s plan administrator or benefits department to determine if special procedures may be required. Next, the client would use Mountain West IRA’s Rollover Certification Form to deposit the rollover funds from the former employer’s plan.
Contact Mountain West IRA to learn more about the 401(k) rollover process and the available investment options.
Many investors still are not aware that they can invest in alternative investments. Anything that does not fall within the definition of traditional stock and bonds can be loosely defined as alternative investments. These types of investments have many benefits related to them.
1. Mitigate Market Volatility
Alternative investments can cushion a portfolio from market volatility when the investments are in asset classes that feature low correlation to the markets.
“Do not put all of your eggs in one basket” has been saying for decades. Investing in alternative assets allows the investor to spread the risk out. With all of the alternative investment options available, investors have a wide range of choices. Please visit www.MountainWestIRA.com to view popular alternative investment options.
If investors are willing to risk a little more on certain alternative investments, they may be rewarded with higher returns. Other investments, such as real estate, can provide a relatively steady income stream for many years to come.
4. New Opportunities
Not every investor is comfortable in their knowledge of the stock market, which can make investing more difficult. However, by investing in alternative assets, it opens up new exposures and opportunities where they may have more interest and knowledge. Our clients have the opportunity to set the terms of their returns or dividends by choosing their investments.
5. Lower Transaction Costs
Short-term investments can require high amounts of turnover, which can lead to high transaction costs. While alternative investments may have a higher upfront fee compared to short-term traditional investments, they will not have as high of a turnover rate, keeping transaction costs lower. Depending on your expertise Mountain West IRA has 2 different fee schedules to keep costs as low as possible.
Talk to Mountain West IRA about the alternative investments available to investors. Some of the alternative investment options include real estate, precious metals, private placements, and more.
Self-directed retirement accounts have gained popularity over the years. This is mostly due to the fact that investors are wanting more freedom when choosing investments. One of the more popular investments with these retirement accounts is real estate.
Real estate can be a good long-term investment and generate high returns for investors. With a Mountain West IRA self-directed plan, investors can choose from many real estate options. These include single-family homes, multifamily-units, apartment buildings, condominiums, improved or unimproved land, commercial property and more.
When thinking about investing in real estate through a self-directed IRA, there are some things to consider:
It can be a process. Often, opening an account can take some time. A rollover might be necessary to start the account. Then, the real estate investment must be approved, which can also take a decent amount of time.
Funds aren’t for immediate use. When the investment yields funds, there are some restrictions on how they are used. There are also restrictions on who can occupy the real estate.
It can be taxing. When investing in real estate, it can be a good decision to hire a property management company. This takes a lot of the stress off the investor’s shoulders. All of the expenses for the property will also be taken from the IRA funds.
Although this may make it sound a little daunting to invest in real estate with an IRA, the professionals at Mountain West IRA can answer questions and guide investors through the process. Self-directed retirement accounts offer a wide variety of investment options and are a great tool for investors who want more control over their retirement.
Millennials are struggling to save and pay off student debt at the same time, putting them behind in the retirement savings area. The ones that are managing to save, aren’t saving what experts consider enough. There are some things they can do about it though.
One of the biggest expenses on Millennials’ plates is housing. Before signing the lease to the really nice apartment with a pool, dishwasher and other extras, take a moment to reconsider. Most people can probably get along just fine without a few of the extra amenities and put the rent savings aside for retirement.
Create a Budget
This goes for everyone, but Millennials should get into the habit of creating a budget early on. Tracking spending can help determine how much money is spent on necessary purchases and how much is spent on extras. After creating a budget, it is easier to put more into a retirement savings account.
Millennials should make it a goal to increase how much they save for three months. This can prove it is possible to save more, with a few lifestyle adjustments. It might mean having to cook at home more than eating out with friends, but it will be worth it later on.
These all seem like fairly easy tips, but putting them into practice is the difficult part. Millennials are in the spot where they’ve begun a career and are probably making more money than before. However, instead of saving the extra, Millennials, like many others of all ages, tend to increase their spending.
The tips listed about can help deter this habit and get Millennials on the right track for retirement savings. For those who haven’t yet set up a retirement savings account, contact Mountain West IRA. They have an option that is right for everyone.
When the time has come to starting preparing to leave the workforce, getting everything in order is a good idea. There are key steps starting a year out that one should take before retiring.
- 12 months out
- Cut back on stock investments. A downward trend in the market could affect years of saving.
- Create a retirement budget. There are multiple calculators to help figure this out based on expenses and one’s nest egg.
- Six months:
- Figure out health care finances. If a Health Savings Account hasn’t already been set up, this is the time to discover what coverage option will work best.
- Three months:
- Begin the rollover process. The professionals at Mountain West IRA can help with this.
- Plan ahead. Start thinking of how to fill time after retiring. Research volunteer options in the area, discover a new hobby or look into starting a new business.
Planning for retirement can be overwhelming and stressful. Mountain West IRA can help take the stress out of retirement planning. They have multiple plans to fit everyone’s needs.