By J.P. Dahdah, Founder & CEO of Vantage
Deciding to select a 401K plan through your employer can be a starting point for retirement savings
However, with the freedom of a Self-Directed IRA, you are granted full control of how your wealth is grown through private investments.
With financial institutions always seeking to lure you into “great investment” opportunities, the list of retirement savings accounts to choose from can seem daunting.
Investment options and alternatives.
With a 401K plan, generally, your employer has already chosen a financial institution to handle their investment accounts. You can decide how much of your salary you would like to contribute.
With a Self-Directed IRA, you can decide not only what stock or mutual funds you want to invest in, but you can also allocate funds from your account that are penalty and tax-free to invest in real estate, precious metals, or to start dabbling in the world of private lending.
Contribution limits
A 401K-plan does have higher annual contribution limits than a Self-Directed IRA. The limit for contributions is set by the IRS. The best of both worlds is an employer matching program.
Specific contributions and loans
A 401K-account set up through an employer usually includes employer contributions as a perk for its employees. However, most companies have reduced this figure in light of recent economic issues. You can also take out a loan against your 401K account, but you are required to pay this loan back rather quickly.
For more information on how you can discover your IRA investing alternatives contact us
You can also schedule a time for a call that is most convenient for you by clicking here.