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How to Set up a Self Directed 401k and What Can You Get from It?

Once you realize that stocks and mutual funds investment on your retirement plan isn’t the one for you, you’ll begin to ask questions on how to set up a self directed 401k plan. You might have heard what a self directed 401 k is from your friend who owns a small business and perhaps you have understand the basic features of this ultimate retirement plan for the self employed such as the ability to invest in non-traditional assets like real estate, businesses, loans, gold, tax liens and tax deeds, and more. Actually, there is more than the unlimited investment feature that this plan could offer you, but first you have to know if you are eligible to acquire this kind of retirement plan.

There are some eligibility requirements before you could set up and benefit from the self directed 401k or better known as the Solo 401k self directed plan. First, you have to be a business owner, if you happen to be working full time or part time for another company that would still be allowed as long as you are also operating a small business. Small business must not have any full time employees other than your spouse, which you can also declare as a contributor to the Solo 401k retirement account.

How to set up a self directed 401k with the right financial provider that could help you better achieve your retirement goals

Once you know you are qualified to sign up for the Solo 401k plan, you can start choosing the financial partner to assist you with the process. You have to understand that not all financial service providers are the same. Each of them has their own set of expertise in the services they provide. Some providers may focus only on traditional investments while others are expert in real estate and businesses. If you a have specific goal in terms of investment options, choose the provider that could deliver the exact service you need. They would be ready to discuss to you how to set up a self directed 401k and what you can get from it.

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