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Why Millennials Need to Rethink Retirement

so much has changed economically for Millennials and gen Z compared to their Gen X and Boomer predecessors should retirement planning still be approached in the same way or should the work in whatever capacity you can get for 30 years so you can save enough to never work again strategy be amended what if there's a better way [Music] for as long as Retirement has been a thing it's required a ridiculous amount of financial forethought Logistics and frankly hope it is the definition of the long game because it's almost impossible to put it off until the last minute but the retirement landscape has changed significantly over the last century and retirement as a concept is actually fairly new for most of human history people just worked until they died fun the origins of retirement are traced back to Otto von Bismarck in the 1800s when he suggested government-run financial support for older members of society Social Security was passed in America fewer than 100 years ago in 1935 and then corporations decided they would also help foot the bill and pension plans also known as defined benefit plans came into Vogue but 1978 legislation introduced a new way to save in section 401K of the tax code that quietly shifted the burden from the employee clear to the employee in this new legislation creating a defined contribution plan paved the way for the pensions which were expensive for employers to maintain to slowly fall out of favor especially as people began living longer so it's kind of no surprise that today's American workers are under saving since funding your own retirement now mostly without a pension is a relatively new hurdle the risk shift from institutions responsible for funding retirement to individuals being responsible for funding their retirements via 401ks and IRAs has placed the onus almost squarely on the shoulders of workers to figure this thing out buffered by the average social security check worth checks notes fifteen hundred fifty dollars per month that has big implications for young people today because it highlights something crucial retirement is an evolving concept almost necessarily it looks different for every gen generation so Millennials and gen Z have to play this long game differently than those who came before us not just in how we plan financially but also in how we structure Our Lives here's the good news though that means we are given the opportunity to Define for ourselves what type of life we want to build more broadly so knowing it's the long game how do you build a life you don't need a break from rather than bisecting your life into two halves your working half and your retired half like a budget production of the Apple TV plus hit Severance and going ham at each foreign mixing the two together can make the result even more enjoyable and fulfilling overall than saving all of your RNR for the back half of your life it makes sense to devote some time energy and effort to constructing a lifestyle for yourself that you are not itching to escape from every chance you get or counting down the years until retirement and probably making a lot of sacrifices in order to speed up that process in fact that may mean more midday breaks to watch TV or take bike rides or nap on a Wednesday afternoon the paradoxes if you can build a life you don't need a break from then planning for retirement will unfold more organically and take the pressure off but here's the rub it might take a little bit of effort and time to get to a place where your life your routines your workflows your savings cushion can be molded into a form that fits your ideal schedule you may have young children right now who dictate your day you may work in a time-sucking job you may be too low on the corporate food chain to call these types of shots for yourself especially if your work is location dependent or closely tied to another person's schedule you may be juggling all three of these things simultaneously but it's helpful and productive even to dream about what an ideal week in the life would look like it's about creating routines and working styles that generate the most positive outcomes for you it might not be worthwhile to grind it out in a job you hate for 30 years solely for the money before you allow yourself to explore something you're actually interested in that may not pay as well an ideal second act may be less about having unlimited free time to lounge around and more about having meaningful activities to fill your time and for most people that will include work and hobbies you find invigorating so here are a few prompts that I like to ask to help conceptualize what this would look like for you number one in what ways do I deplete myself or run myself into the ground number two what does a life of meaning mean to me number three if I were only allowed to work for two hours per week what parts of my job would I want to keep and what would I want to ditch I'm using an absurdly low amount of time just to force Focus here so only the best stuff can stay number four which rituals or practices make me feel most like myself and what's stopping me right now from doing more of them so now that we've got some of our conceptual boxes checked let's switch gears a little bit and talk about the financial side of this picture calculating your retirement needs based on your age we can leverage some hashtag math to understand how much we need to save whether your retirement income is going to support a traditional retirement at traditional retirement age 65 Plus or it's going to be your supplemental income starting in your 40s if you begin working part-time on a passion project the generally agreed upon replacement rate for income in retirement is about 75 percent in the financial planning world and replacement rate basically just means in order for you to replace your income how much does your portfolio need to be able to pay you this advice is given under the assumption that you'll pay less in taxes as a retiree you'll stop saving and you'll benefit from other Cost Cuts but the problem in my mind is that almost nobody makes the same amount of money throughout their entire career and wild swings and income can make identifying one pre-retirement income pretty difficult here's why this matters though 56 percent of people say that they expect to have less than five hundred thousand dollars by the time they retire providing an annual income of twenty thousand dollars per year according to the four percent rule so supplement that with the average social security check and that's about thirty two hundred dollars per month to live on depending on your needs and your timing that might be enough but it might not be as the same study found that only three percent of retirees deemed they were living the dream while around 37 percent said they were comfortable but I want all of Rich Girl Nation to live dream so let's unpack the math that can show us how to get there first we need to identify our general goal bearing in mind that this is a ballpark and to State the obvious the earlier you start the easier this will be there's really no getting around that so what Grand number in the bank should we shoot for I recommend using your monthly spending plus buffer as a guidepost for how much to invest as opposed to the aforementioned 75 income replacement rate the challenging part about focusing on your monthly spending is that it too fluctuates through different life stages and it'll be impacted by factors like where you live and how many dependents you have and your medical needs but a monthly spending range is usually useful enough to provide a ballpark for example I know that when I was single I lived on about three thousand dollars per month then when I got married my half of our monthly spending jumped up to about four thousand dollars per month when we have kids it might go up to six thousand dollars for my half for consistency's sake so this means our dual income needs to to range anywhere from six to twelve thousand dollars per month and if I can multiply by twelve I can get our annual spending somewhere between 72k and 144k per year depending on the stage of life in today's dollars and If I multiply those numbers by 25 I get our portfolio targets that'll allow for a safe withdrawal rate of roughly four percent that means my ballpark goal is anywhere between 1.8 and 3.6 million dollars so I can take the upper bound to the 3.6 and know that it would likely suffice as my sole source of income in retirement if my ideal life involved no work at all or work of some kind that wasn't paid like caring for family this would be the number necessary for a traditional retirement I can take the lower bound of 1.8 million and know that it would likely suffice as a less traditional retirement buffer for my costs providing the majority of my monthly expenses if enjoyable part-time work could provide the rest this would be the number more appropriate it for the evolved retirement blended with your working life model that we're discussing today unless you think but Katie I do not dream of Labor of any kind why would you suggest that we sandbag the OG retirement Vision with something as silly as part-time work consider this in a recent study from American advisors group they found roughly half of the 1500 people aged 60 to 75 surveyed said they plan to work part-time in retirement 12 percent said they never planned to stop working which is actually an increase from six percent in 2019.

So this is already reality for many retirees but it's hard to say whether it's by choice or out of necessity but work sure feels different when you are choosing it which makes saving and investing for the future a good idea no matter what your plans are and by making intentional shifts toward fulfilling work earlier you are less likely to hit traditional retirement age and feel disappointed if you slogged it out for 30 years doing something you didn't even like and still don't have enough to live a comfortable retirement and with regards to those example ranges the good news is that this is all proportional for example if you spend four thousand per month your gold number would be around 1.2 million which is still a lot but surprisingly achievable with consistent effort and compounding so let's figure out how close you already are to your long-term goal the concept of compounding can help us understand how close we already are to reaching our goal amount and for the sake of Simplicity we'll use a lower average rate of return that takes inflation into account for example maybe you're 30 years old today you've got 100K invested by the time you're 50 that 100K will be worth three hundred twenty thousand dollars assuming a six percent real rate of return even if you didn't invest anything else to reiterate I like to use six percent as a post-inflation rate of return because it helps accurately represent what the money will actually be worth in today's terms simply plug your existing invested assets into a compound interest calculator we'll link a good one in the description use a six percent rate of return and then plug in a realistic number of years between now and when you expect to make this type of transition if you want to be more conservative so think higher inflation lower nominal returns you can use five or even four percent you'll see that depending on how much you have already you may be closer than you think some of you may realize you are already in a position where you can safely downshift and make life adjustments without meaningfully threatening your future security to put a finer point on this you may already have enough saved and invested for future use needs that any stress you're currently experiencing about sticking around in a highly paid field that just is not right for you might be unfounded because we don't know what the individually funded and personally responsible retirement is going to look like for a generation it's worth interrogating whether or not the traditional model for retirement still makes sense for us instead you can determine what a life you don't need a break from looks like and set your financial goals accordingly with a range based on your spending depending on your age and how much you already have saved and invested you may be way closer to safety than you think and if you want to hear the full episode of this week's money with Katie show click the video that just popped up on the screen and in the description of this video our show is a production of morning brew and is produced by henna Velez and me Katie Gotti tossan Devin Emery is our chief content officer our video editors are Christy Muldoon Sebastian Vega and Nicole Friedman additional fact checking comes from Kate Brandt foreign [Music]

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Step 1 The Retirement Success Process: Investment and Risk Management

foreign welcome back to the retirement income show I'm Mark Elliott here with the CEO and founder of Oak Harvest Finance group we're talking about the retirement success plan once it's in place it's not done it's not finished it's always changing and evolving with you and your life so it's really important to get this in place to have a plan give you more confidence and and be more comfortable in retirement with maybe hopefully not so much stress about where you are again that number is 800-822-6434 to learn more 800-822-6434 Troy's breaking down what is exactly the retirement success plan so it starts with the investment plan then it's the income plan then it's a tax plan then it's a health plan and then it is the estate plan so I want to kind of tie together why that sequence is is important just briefly but if you don't understand if you don't have a proper risk management structure in place obviously you open the potential for losses beyond your willingness to stay the course now it's not just stay the course with the Investments it's stay the course with your retirement success plan with your financial plan so we have to Define what those guard rails are first this is the process of understanding where your risk limitations are so if you think about you're going down a highway and of course you have guard rails on each side and if you go off the highway those guard rails are there to protect you from going into the opposing Direction on the freeway now in retirement when we're talking about managing risk when we can identify these emotional guardrails so are you willing to see and I and I'd like to Define risk in terms of dollars not percentages and I'll tell you why in a minute but let's say you have a million dollars saved for retirement if all that money is in your 401k first and foremost we have to realize that it's not really a million dollars because every dollar in there is tax deferred so we have to understand we're going to address that as part of this process but when we talk about risk we have to understand that not all of those dollars are yours you have a junior partner on that account we want to keep them a junior partner we don't want Uncle Sam to become a senior partner or a majority share owner of your retirement account but just understanding that that not all of that money is yours that you do have a junior partner in that account it ties into this risk management discussion a little bit so when we talk about risk in terms of dollars are you willing to see your account go down two hundred thousand just a question could be yes could be no it doesn't there is no right or wrong answer but by asking these questions we can start to Define where your emotional guard rails are because the number one thing that you can do when it comes to ruining a financial plan or a retirement plan is to have more risks so your accounts go down more than you can mentally tolerate emotionally withstand and then you sell get out sit in cash for two or three years miss the rebound and now you're you're in a you know you're in a bad bad bad spot I can't tell you I mean we've been through this so many times with clients and conversations about you know Troy I've been watching the news I think we're going into recession we need to get out of the market we need to do this or my accounts are down 10 or 20 or when covid hit we there's a plan for for a proper plan accounts for the markets being down 20 or 30 percent so when we talk about risk management and we're asking you these questions the reason why is because we're already planning for recessions we're planning for potential Market crashes this is part of life okay we cannot avoid these things unless we completely stay in cash and if that's the case you might as well bury the money in the backyard and just spend whatever you can and hope you don't run out and eat rice and beans for for for retirement and that's not how most of our clients that's not how most of you want to spend you know after working for an entire career you want to spend your life so are you okay with a 200 000 decline by the way which is 20 and the reason why I Define it in terms of dollars is because a long time ago I had a client come in well it was a prospective client at the time and like most financial advisors we would talk about it in terms of percentages and and we said are you okay with a 10 or 20 decline he said you know what 20 is pretty much my Max and he had around a million dollars so then I I just happened to put it in terms of dollars and I said okay so if your accounts go down two hundred thousand dollars you're okay with that and he said he said no Troy he said I would fire you on the spot and so that you know for me it connected a Big Dot It was kind of a big evolution in my career when I was younger because I realized I'm a financial guy I do this every single day I think in terms of percentages and statistics and and but most people think in terms of dollars so when we ask you that question you say yes I'm okay with a 200 000 or 100 000 or maybe it's not even close to that or maybe it's much much much more what that does for us is it helps to Define what type of portfolio we need to construct so emotionally there's a small probability that it is going to hit your your downside guard ramp and if we can go through retirement and not ever hit that downside guard rail well there's a very good chance from our experience that you're going to stay the course you're going to stick with your plan and if you can stick with your plan you have a much higher probability of success in retirement this is why we call it the retirement success process this is why we call it a retirement success plan this is what we want to deliver to you so now I said I wanted to talk a little bit about the sequence and why risk management in investment planning comes first if we don't and in most simple terms if if your money let's say you have a million bucks and you never had to take anything out if you average four percent versus nine percent at higher rates of return you obviously can expect your accounts to grow to a larger value that means the income planning is impacted that also means that now your tax planning is impacted so we can't build an income plan or a tax plan without first understanding an estimated reasonable expected return for a combination of Securities inside a portfolio so step one has to be this risk management discussion which then can lead us to the investment construction of your portfolio which then gives us a pretty good idea of expected return upside downside deviation so we can now start talking about income planning we can actually project and do a sensitivity analysis on tax planning based on different account levels let me break that down for you before we get into the tax planning section later on the show if you have a million dollars in your IRA you are forced to start taking a certain percentage out it's around four percent at age 72 but as you get to be 74 76 77 you're required to distribute a larger and larger percentage so if your million grows to 1.5 you take let's say four percent of that out that's a that's a number that is less than if your IRA grows to 2 million so the more aggressive your portfolio is or the higher expected return the more we should anticipate that require minimum distribution being a larger number that rmd is the amount you're forced to take out and pay taxes on we've seen clients I I'd like to phrase this for prospective clients because we address this with you as a client this is part of the retirement success process and the retirement success plan but so often when someone comes in here and they've done a pretty good job saving they have eight hundred thousand they have a million they have two or three million when we start to do this analysis if you don't address this tax problem and it is a tax problem it can be you know a tax nightmare for many of you those rmds when we get out to be 75 and 77 or 78 a hundred thousand hundred and fifty thousand two hundred thousand now you're taking that money out you're probably not spending that much on top of Social Security on top of any rental income or real estate income or pension or dividend or interest or any other income that you have outside of your retirement account and we've seen many people be in a much higher tax bracket and have much more income in their 80s than they ever had throughout their entire life up to that point and it's because of a lack of planning so that's what we're trying to get ahead of so we have to understand the risk structure of our portfolio and how we manage that risk so we can keep you on course we can keep you on schedule with your plan that then gives us an idea of a range of expected returns based on basic financial planning Concepts from there we can develop that income strategy and income is not just Social Security it's not just how much to take out don't get me started on the four percent rule but it is also from which accounts and then we get into the taxes so if you don't have a retirement success plan give us a call 1-800-822-6434 we're going to walk you through this process if you become a client you will have this plan in place that deals with risk Investments taxes income along with the rest of the retirement success plan 1-800-822-6434 Oak Harvest Financial Group check out the website check out the YouTube channel Oak Harvest Financial Group so we're talking about the retirement success plan Troy still got a lot to get to stay with us we're back in one minute investment advisory services offered through Oak Harvest Financial Group LLC Oak Harbor's Financial Group is an independent Financial Services firm that helps people create retirement strategies using a variety of insurance and investment products investing involves risk including the loss of principal any references to protection benefits or lifetime income generally refer to fixed Insurance products never Securities or investment products insurance and annuity product guarantees are backed by the financial strength and claims paying ability of the issuing insurance company Oak Harbor's Financial Group LLC is not permitted to offer a No statement made during this show shall constitute tax or legal advice you should speak to a qualified professional before making any decisions about your personal situation we are not affiliated with the US government or any governmental agency this radio show is a paid placement foreign [Music]

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Why Millennials Need to Rethink Retirement

so much has changed economically for Millennials and gen Z compared to their Gen X and Boomer predecessors should retirement planning still be approached in the same way or should the work in whatever capacity you can get for 30 years so you can save enough to never work again strategy be amended what if there's a better way [Music] for as long as Retirement has been a thing it's required a ridiculous amount of financial forethought Logistics and frankly hope it is the definition of the long game because it's almost impossible to put it off until the last minute but the retirement landscape has changed significantly over the last century and retirement as a concept is actually fairly new for most of human history people just worked until they died fun the origins of retirement are traced back to Otto von Bismarck in the 1800s when he suggested government-run financial support for older members of society Social Security was passed in America fewer than 100 years ago in 1935 and then corporations decided they would also help foot the bill and pension plans also known as defined benefit plans came into Vogue but 1978 legislation introduced a new way to save in section 401K of the tax code that quietly shifted the burden from the employee clear to the employee in this new legislation creating a defined contribution plan paved the way for the pensions which were expensive for employers to maintain to slowly fall out of favor especially as people began living longer so it's kind of no surprise that today's American workers are under saving since funding your own retirement now mostly without a pension is a relatively new hurdle the risk shift from institutions responsible for funding retirement to individuals being responsible for funding their retirements via 401ks and IRAs has placed the onus almost squarely on the shoulders of workers to figure this thing out buffered by the average social security check worth checks notes fifteen hundred fifty dollars per month that has big implications for young people today because it highlights something crucial retirement is an evolving concept almost necessarily it looks different for every gen generation so Millennials and gen Z have to play this long game differently than those who came before us not just in how we plan financially but also in how we structure Our Lives here's the good news though that means we are given the opportunity to Define for ourselves what type of life we want to build more broadly so knowing it's the long game how do you build a life you don't need a break from rather than bisecting your life into two halves your working half and your retired half like a budget production of the Apple TV plus hit Severance and going ham at each foreign mixing the two together can make the result even more enjoyable and fulfilling overall than saving all of your RNR for the back half of your life it makes sense to devote some time energy and effort to constructing a lifestyle for yourself that you are not itching to escape from every chance you get or counting down the years until retirement and probably making a lot of sacrifices in order to speed up that process in fact that may mean more midday breaks to watch TV or take bike rides or nap on a Wednesday afternoon the paradoxes if you can build a life you don't need a break from then planning for retirement will unfold more organically and take the pressure off but here's the rub it might take a little bit of effort and time to get to a place where your life your routines your workflows your savings cushion can be molded into a form that fits your ideal schedule you may have young children right now who dictate your day you may work in a time-sucking job you may be too low on the corporate food chain to call these types of shots for yourself especially if your work is location dependent or closely tied to another person's schedule you may be juggling all three of these things simultaneously but it's helpful and productive even to dream about what an ideal week in the life would look like it's about creating routines and working styles that generate the most positive outcomes for you it might not be worthwhile to grind it out in a job you hate for 30 years solely for the money before you allow yourself to explore something you're actually interested in that may not pay as well an ideal second act may be less about having unlimited free time to lounge around and more about having meaningful activities to fill your time and for most people that will include work and hobbies you find invigorating so here are a few prompts that I like to ask to help conceptualize what this would look like for you number one in what ways do I deplete myself or run myself into the ground number two what does a life of meaning mean to me number three if I were only allowed to work for two hours per week what parts of my job would I want to keep and what would I want to ditch I'm using an absurdly low amount of time just to force Focus here so only the best stuff can stay number four which rituals or practices make me feel most like myself and what's stopping me right now from doing more of them so now that we've got some of our conceptual boxes checked let's switch gears a little bit and talk about the financial side of this picture calculating your retirement needs based on your age we can leverage some hashtag math to understand how much we need to save whether your retirement income is going to support a traditional retirement at traditional retirement age 65 Plus or it's going to be your supplemental income starting in your 40s if you begin working part-time on a passion project the generally agreed upon replacement rate for income in retirement is about 75 percent in the financial planning world and replacement rate basically just means in order for you to replace your income how much does your portfolio need to be able to pay you this advice is given under the assumption that you'll pay less in taxes as a retiree you'll stop saving and you'll benefit from other Cost Cuts but the problem in my mind is that almost nobody makes the same amount of money throughout their entire career and wild swings and income can make identifying one pre-retirement income pretty difficult here's why this matters though 56 percent of people say that they expect to have less than five hundred thousand dollars by the time they retire providing an annual income of twenty thousand dollars per year according to the four percent rule so supplement that with the average social security check and that's about thirty two hundred dollars per month to live on depending on your needs and your timing that might be enough but it might not be as the same study found that only three percent of retirees deemed they were living the dream while around 37 percent said they were comfortable but I want all of Rich Girl Nation to live dream so let's unpack the math that can show us how to get there first we need to identify our general goal bearing in mind that this is a ballpark and to State the obvious the earlier you start the easier this will be there's really no getting around that so what Grand number in the bank should we shoot for I recommend using your monthly spending plus buffer as a guidepost for how much to invest as opposed to the aforementioned 75 income replacement rate the challenging part about focusing on your monthly spending is that it too fluctuates through different life stages and it'll be impacted by factors like where you live and how many dependents you have and your medical needs but a monthly spending range is usually useful enough to provide a ballpark for example I know that when I was single I lived on about three thousand dollars per month then when I got married my half of our monthly spending jumped up to about four thousand dollars per month when we have kids it might go up to six thousand dollars for my half for consistency's sake so this means our dual income needs to to range anywhere from six to twelve thousand dollars per month and if I can multiply by twelve I can get our annual spending somewhere between 72k and 144k per year depending on the stage of life in today's dollars and If I multiply those numbers by 25 I get our portfolio targets that'll allow for a safe withdrawal rate of roughly four percent that means my ballpark goal is anywhere between 1.8 and 3.6 million dollars so I can take the upper bound to the 3.6 and know that it would likely suffice as my sole source of income in retirement if my ideal life involved no work at all or work of some kind that wasn't paid like caring for family this would be the number necessary for a traditional retirement I can take the lower bound of 1.8 million and know that it would likely suffice as a less traditional retirement buffer for my costs providing the majority of my monthly expenses if enjoyable part-time work could provide the rest this would be the number more appropriate it for the evolved retirement blended with your working life model that we're discussing today unless you think but Katie I do not dream of Labor of any kind why would you suggest that we sandbag the OG retirement Vision with something as silly as part-time work consider this in a recent study from American advisors group they found roughly half of the 1500 people aged 60 to 75 surveyed said they plan to work part-time in retirement 12 percent said they never planned to stop working which is actually an increase from six percent in 2019.

So this is already reality for many retirees but it's hard to say whether it's by choice or out of necessity but work sure feels different when you are choosing it which makes saving and investing for the future a good idea no matter what your plans are and by making intentional shifts toward fulfilling work earlier you are less likely to hit traditional retirement age and feel disappointed if you slogged it out for 30 years doing something you didn't even like and still don't have enough to live a comfortable retirement and with regards to those example ranges the good news is that this is all proportional for example if you spend four thousand per month your gold number would be around 1.2 million which is still a lot but surprisingly achievable with consistent effort and compounding so let's figure out how close you already are to your long-term goal the concept of compounding can help us understand how close we already are to reaching our goal amount and for the sake of Simplicity we'll use a lower average rate of return that takes inflation into account for example maybe you're 30 years old today you've got 100K invested by the time you're 50 that 100K will be worth three hundred twenty thousand dollars assuming a six percent real rate of return even if you didn't invest anything else to reiterate I like to use six percent as a post-inflation rate of return because it helps accurately represent what the money will actually be worth in today's terms simply plug your existing invested assets into a compound interest calculator we'll link a good one in the description use a six percent rate of return and then plug in a realistic number of years between now and when you expect to make this type of transition if you want to be more conservative so think higher inflation lower nominal returns you can use five or even four percent you'll see that depending on how much you have already you may be closer than you think some of you may realize you are already in a position where you can safely downshift and make life adjustments without meaningfully threatening your future security to put a finer point on this you may already have enough saved and invested for future use needs that any stress you're currently experiencing about sticking around in a highly paid field that just is not right for you might be unfounded because we don't know what the individually funded and personally responsible retirement is going to look like for a generation it's worth interrogating whether or not the traditional model for retirement still makes sense for us instead you can determine what a life you don't need a break from looks like and set your financial goals accordingly with a range based on your spending depending on your age and how much you already have saved and invested you may be way closer to safety than you think and if you want to hear the full episode of this week's money with Katie show click the video that just popped up on the screen and in the description of this video our show is a production of morning brew and is produced by henna Velez and me Katie Gotti tossan Devin Emery is our chief content officer our video editors are Christy Muldoon Sebastian Vega and Nicole Friedman additional fact checking comes from Kate Brandt foreign [Music]

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Selecting an IRA Custodian

To hold physical gold and silver in a Self-Directed IRA, you are required by the IRS to open an account with an approved custodian and have the custodian purchase precious metals on your behalf. A custodian can be a bank, credit union or trust company, or an entity that's licensed and regulated by the IRS as a “non-bank custodian.” IRA custodians must follow IRS requirements to hold assets belonging to their clients; A Self-Directed IRA is an IRA held by a custodian that allows the account holder to diversify with a broad set of assets including “alternative assets” such as precious metals.

U.S. Money Reserve is a provider of precious metals, not a custodian. An IRS-approved custodian can purchase gold and silver from a provider of precious metals on behalf of the IRA owner. Those precious metals are then held in an IRS-approved depository for secure storage. Self-Directed IRA administrators and promoters don't meet IRS requirements to be a custodian or trust, and they can't hold assets or issue funds. Administrators and promoters are responsible only for marketing and selling, entering data, and supplying basic reports. To complete transactions, an administrator or promoter must transfer funds to and from a custodian. How do you pick a Self-Directed IRA custodian? Experience. Be cautious if the custodian lacks in-depth expertise. You're putting a considerable part of your financial future in their hands.

Knowledge. All employees of a custodian should be able to supply comprehensive information about Self-Directed IRAs. Customer service. Everyone you come in contact with should be professional, friendly, knowledgeable, and efficient. When you work through U.S. Money Reserve's Gold Standard IRA program, your IRA Account Executive will coordinate with your custodian to set up your IRA. Call U.S. Money Reserve today for a one on one consultation. Click the link in the description to download your free gold information kit which will provide you with important information you should know about diversifying your portfolio with precious metals..

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Silver and other precious metals IRA

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Selecting an IRA Custodian

To hold physical silver and gold in a Self-Directed IRA, you are required by the internal revenue service to open up an account with an authorized custodian and have the custodian acquisition rare-earth elements on your behalf. A custodian can be a financial institution, debt union or count on business, or an entity that'' s licensed as well as managed by the IRS as a “non-bank custodian.” Individual retirement account custodians should follow IRS needs to hold assets belonging to their clients; A Self-Directed Individual Retirement Account is an IRA held by a custodian that allows the account owner to expand with a broad set of properties including “alternate assets” such as precious metals.U.S.

Money Book is a carrier of rare-earth elements, not a custodian. An IRS-approved custodian can buy silver and gold from a supplier of rare-earth elements on behalf of the individual retirement account proprietor. Those rare-earth elements are after that kept in an IRS-approved vault for secure storage space. Self-Directed individual retirement account administrators and also promoters don'' t satisfy internal revenue service needs to be a custodian or count on, and also they can'' t hold possessions or problem funds. Administrators as well as promoters are liable just for advertising and marketing, getting in data, as well as supplying basic reports. To finish deals, a manager or marketer need to transfer funds to and from a custodian. Just how do you pick a Self-Directed individual retirement account custodian? Experience. Be mindful if the custodian does not have thorough experience. You'' re putting a substantial component of your financial future in their hands. Understanding. All workers of a custodian should be able to supply extensive information about Self-Directed IRAs. Customer care. Every person you come in call with ought to be professional, friendly, educated, and effective. When you overcome united state Money Book'' s Gold Standard IRA program, your IRA Account Exec will coordinate with your custodian to establish up your IRA.Call U.S.

Cash Get today for an one on one assessment. Click the web link in the summary to download your totally free gold information package which will supply you with important information you should find out about expanding your profile with rare-earth elements.

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Silver and other precious metals IRA

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