Including the Solo 401k in Your Retirement Strategy
A successful retirement strategy may include the Solo 401k retirement solution. The Solo 401k is an qualified retirement plan for the self-employed and small business owner. Its advantages offer a solution to building and diversifying your savings for the future.
The need for a clear retirement strategy
A recent study highlighted the need for a clear retirement strategy. This was particularly true for the women polled. Women are at greater risk of not achieving a financially secure retirement.
The greatest factor? A lack of planning.
Although 56% of the women expected to fund their retirement, only 11% had a clear written strategy to do so.
The study had other findings as well. 75% felt that they did not know as much about their retirement as they wanted to, and 56% admitted to guessing the amount they would need for retirement. More than half did not feel confident in their ability to retire comfortably.
The self-directed Solo 401k retirement solution can be an answer for this problem. Its powerful advantages make it a valuable financial tool in reaching retirement goals.
High contribution limits
In 2013, the IRS increased the Solo 401k contribution limit to $51,000 for those under the age of 50 and $56,500 for those age 50 and above. Higher contribution limits means a greater amount saved for retirement and sheltered from taxes. And if a spouse is also involved in the business, he or she can also contribute up to the same amount, virtually doubling the limit.
Unlimited investment options
The Solo 401k can be invested in both traditional and non-traditional assets, opening up a world of possibilities. Invest in real estate, private businesses, notes, and precious metals, to name a few. Grow and diversify retirement savings through the plan’s unlimited investment capability.
Checkbook control
The participant is trustee of their Solo 401k. He or she directs the funds without the need of custodian consent. The trustee invests the plan with the ease and speed of simply writing a check.
Loan feature
The self-directed Solo 401k from Sense Financial includes a participant loan feature. The participant can borrow up to $50,000 from the account for any purpose. The loan proceeds can be used for paying down debt, enhancing the business, or paying college expenses, for example. And all payments go back to the Solo 401k.
With this loan, participants of the plan can focus on the future, and the plan benefits as a result.
High contribution limits, checkbook control, and unlimited investment options make the Solo 401k a true retirement solution. The plan can be a powerful tool in building and diversifying retirement savings.