3 Reasons to Embrace Self-Direction Before and During Retirement

Featured Image

Have you considered avenues for staying busy in your golden years? Self-directed investing could be the perfect way to avoid idle hands and keep making money even after you wave goodbye to your primary occupation. You're certainly not alone if a hands-on approach to retirement speaks to you.

A recent survey conducted by AARP, as cited in an article by the Center for Retirement Research at Boston College, found that a higher percentage of current and future retirees plan to continue working in some capacity even after they reach age 62. This is the earliest age an individual would be eligible to begin collecting social security benefits, but according to the survey, fewer than 40% of new retirees elect to cash in following their 62nd birthdays. Furthermore, 32% of surveyed retirees claim to either currently work or have worked during retirement, while 52% of working individuals age 50 and above anticipate finding a supplemental job once they reach retirement. An immediate need for money, a projected need for money down the road, and the psychological need to remain useful and productive have reportedly contributed to this uptrend.

If you find yourself subject to one or all of these circumstances, staying the course with your self-directed investments even after you've retired could be the answer. Let's examine three ways this could be possible:

  • You maintain control over your future. The stock market can jostle your financial well-being even after retirement, so why not stick with the tried and true alternative IRA investments that brought you this far?
  • Income-producing assets can allow you to defer social security enrollment until a subsequent year, which, for every year you do so, will lead to larger checks. In the meantime, cash distributions from your IRA may not jeopardize the earning potential of your held assets. For instance, you can distribute rental income at your leisure, but that may not prevent your IRA-owned property from generating ongoing returns.
  • You can avoid cabin fever by occupying your time with the lucrative strategy you've already come to master.
For more information about self-directed IRAs or retirement investing in general, please don't hesitate to contact New Direction Trust Company at 877-742-1270 or info@ndtco.com.