Roll It Over! Self-Directed Accounts Make Sense

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Most Americans have never even heard of  a self-directed account.  They have been around for decades but because most employers and business owners are heavily courted by Wall Street brokerages and banks, almost all retirement plans are made up of a buffet of mutual funds ranging from low risk to high risk.   If you have a 401K (also known as a Thrift Savings Plan for government employees or 403B for employees of a non-profit) at an old employer, you must consider that although they are happy to keep servicing your account, it is costing you money.  It is highly like that:

  • your former employer pays an administrative fee to the service provider
  • you as an account holder are paying some portion of investment management fees for the plan (check plan fees)
  • there are expenses for each fund that you are invested in (check the expense ratios)

These fees are eroding your return and you can only choose from funds THEY select - very restrictive!   A self-directed plan gives you the flexibility to invest your money in just about anything. YOU are in control.  If you want to invest in the stock market, you still can. YOU decide which funds or stocks YOU want to invest in. However, if you truly want to diversify your investments, you have the ability to invest in different asset classes.  There are certain rules you must follow but you can acquire performing assets like rental properties, precious metals, cryptocurrencies, and a lot more.  You can open a self-directed account for a:

  • 401K (previous employer)
  • Traditional IRA
  • SEP
  • Roth IRA
  • Pension 
  • Profit Sharing
  • HSA
  • Education savings (529 plan)

So, if you have an existing account and you want to take more control over the investments, I encourage you to learn how you can rollover your account to a self-directed plan custodian. I recommend NuView Trust. I am a happy client and know they can answer your questions and get you started, no matter where you live around the country. Their fees are nominal and their customer service is excellent.

Retirement, , InvestingLesley BatsonSelf-Directed, 401K, HSA, 529 plan, 403B, SEP, Roth IRA